Billionaire investor Jeremy Grantham has expressed a strong skepticism towards the cryptocurrency market, labeling it as a “useless, speculative mechanism” during a recent appearance on CNBC’s “Squawk Box.” Grantham, who co-founded the investment firm GMO, has made it clear that he has no plans to include cryptocurrencies in his investment portfolio.
In his remarks, Grantham emphasized the volatility and lack of reliability of Bitcoin as a store of value. He pointed out Bitcoin’s significant decline of over 52% from its all-time high of $126,080, which was reached last October. This downturn occurred even in the context of relatively strong economic conditions, contrasting sharply with the performance of gold, which has seen substantial gains. Gold reached a remarkable new high earlier this year, exceeding $5,500 per ounce, before falling about 25% to around $4,096.
Grantham further questioned the practical utility of Bitcoin, noting that “people don’t use it to make serious trades” or for everyday transactions such as buying groceries. He characterized Bitcoin as a tool that effectively enables illicit activities, stating that it “allows crooks to move money around without leaving a trace” and praised its effectiveness in that regard.
While he did acknowledge the potential of blockchain technology to transform various sectors in the future, he remained adamant that his critique was specifically directed at Bitcoin and other cryptocurrencies. Recently, Bitcoin has faced significant trading challenges, having dropped about 17% within the last month alone, currently trading at approximately $60,529.
This sentiment echoes the views recently expressed by fellow billionaire investor Mark Cuban, who also criticized Bitcoin’s effectiveness as a reliable store of value. Cuban highlighted Bitcoin’s recent lackluster performance in comparison to gold, stating it isn’t the hedge he had anticipated and revealing that he has sold off a majority of his Bitcoin holdings.
