Jeremy Grantham has renewed his long-standing critique of bitcoin, positing that the cryptocurrency is destined to fade into irrelevance over the coming decades. The co-founder of investment firm GMO and a recognized market commentator, Grantham articulated his concerns during an appearance on CNBC’s “Squawk Box.” He described bitcoin as a “useless, speculative” asset devoid of intrinsic value, highlighting its underperformance even during bull markets.
Grantham’s perspective centers on the inherent volatility of bitcoin, which he argues undermines its status as a stable form of value. He noted that the cryptocurrency recently halved in value without any clear reason, even amid a robust economy. This kind of instability, he cautioned, makes it unreliable as a long-term investment.
In contrast, Grantham pointed to gold as a more dependable asset, which has provided solid gains despite some recent pullbacks from historical highs. He expressed skepticism regarding bitcoin’s practical applications, arguing that it does not serve as a viable currency for everyday transactions. “People don’t use it to make serious trades, they don’t use it to buy their dinner and pay at the supermarket,” he explained, adding that its primary use seems to be facilitating money transfers for illicit activities.
Bitcoin’s notorious volatility has been well-documented, with previous cycles witnessing dramatic crashes, often dropping over 70% from their peaks. Currently, the cryptocurrency is approximately 52% below its height from October, hovering just under the $60,000 mark, leading some investors to speculate that the current slump may persist for several more months. Grantham’s analysis underscores a broader skepticism about the long-term viability of cryptocurrencies as reliable investment vehicles.
