Munger Protégé Li Lu Calls Crypto “Fundamentally Bogus” and Predicts Its Demise

Li Lu, a Charlie Munger protégé and founder and chairman of Himalaya Capital, said at the 36th Annual Graham & Dodd Luncheon in New York on October 5 that he expects cryptocurrency to disappear. Asked about crypto in the context of global financial conditions, he argued that a currency needs an enforcement mechanism to function as settlement or a store of wealth, which he said a project started by a few individuals cannot provide. He also said crypto helps criminals and facilitates illicit transactions and that society would be better off banning it, while describing collecting crypto as a personal preference comparable to valuing a particular artist’s work.