Billionaire investor Jeremy Grantham has made it clear that he does not see cryptocurrency, particularly Bitcoin, as a viable investment option for his portfolio. During an appearance on CNBC’s “Squawk Box,” Grantham, who is the co-founder of investment firm GMO, labeled crypto as a “useless, speculative mechanism,” indicating his skepticism about the future of these digital assets.
Grantham expressed a lack of optimism regarding the longevity of cryptocurrencies, predicting that they will “dwindle away” over time, and suggested their decline will be gradual rather than sudden. He pointed to Bitcoin’s recent instability as a significant concern, noting a substantial 52% drop from its all-time high of $126,080 achieved last October. This decline occurred despite generally strong economic conditions, during which gold—another traditional store of value—managed to gain significantly.
The gold market has seen fluctuations this year, with the commodity rising to a peak above $5,500 per ounce before experiencing a decline of over 25%, now trading around $4,096. Grantham emphasized that Bitcoin cannot be relied upon as a dependable store of value, criticizing its limited use in everyday transactions. “You can’t depend on it in that way,” he remarked, highlighting that most people do not utilize Bitcoin for serious trades or daily purchases.
Instead, Grantham described Bitcoin as a tool that facilitates illicit transactions, stating that it allows “crooks to move money around without leaving a trace,” noting the effectiveness of the technology in that regard. However, he did acknowledge that while Bitcoin may be problematic, the underlying blockchain technology could hold potential for transformative applications in the future, although he delineated his criticisms as specifically targeting Bitcoin and other cryptocurrencies.
Recent data reveals that Bitcoin has seen a 17% decline over the past month, trading recently at $60,529. Grantham’s perspectives echo those of other high-profile investors, such as Mark Cuban, who last month criticized Bitcoin’s performance as a store of value. Cuban noted that he has sold most of his Bitcoin holdings due to its disappointing performance compared to gold, stating that it has not served as the hedge he expected it to be.
As the debate over the viability of cryptocurrencies as an investment continues, Grantham’s assertions highlight the skepticism held by some in the investment community, particularly regarding Bitcoin’s long-term sustainability and utility.
