Billionaire investor Jeremy Grantham, renowned for his accurate predictions regarding asset bubbles, has made a bold declaration regarding the future of Bitcoin. During a recent interview on CNBC, Grantham described the top cryptocurrency as a “useless, speculative asset” that he believes will ultimately crash to “zero” over the coming decades.
Grantham has a history of astute market analysis, previously avoiding Japanese equities and real estate during the 1980s asset bubble, steering clear of tech stocks during the dot-com bubble of the late 1990s, and minimizing exposure to housing before the 2008 financial crisis. He built his reputation on his ability to identify and navigate away from speculative bubbles before they burst.
In the interview, Grantham asserted that Bitcoin will “dwindle away… not with a bang, but a whimper.” He criticized the cryptocurrency for lacking a stable value, pointing out its dramatic price drop of 45% over the past year, in stark contrast to gold, which has seen a price increase of 20% during the same timeframe. He reiterated that an asset as volatile as crypto cannot offer the long-term stability that investors seek.
Expanding on his critique, Grantham highlighted the negligible practical uses of Bitcoin, noting that it is not commonly used for transactions, such as paying at restaurants, and is primarily viewed as a speculative instrument. He expressed concern over its association with illicit transactions while clarifying that his criticism does not extend to the blockchain technology that underpins cryptocurrencies.
This is not the first time Grantham has taken aim at Bitcoin. Earlier this year, in a podcast, he described it as primarily benefiting “bad guys,” such as drug dealers, who use it to evade detection. He voiced astonishment that governments have not moved to ban Bitcoin and similar assets.
As of now, Bitcoin is trading at approximately $58,319, signaling continued interest amid the skepticism expressed by seasoned investors like Grantham.
