Billionaire investor Jeremy Grantham, co-founder of GMO and a well-known market commentator, reiterated his longstanding skepticism toward bitcoin during an appearance on CNBC's 'Squawk Box' on Friday [1]. Grantham described bitcoin as a 'useless, speculative' asset lacking intrinsic value, and forecasted that it will 'dwindle away, I suspect – not with a bang, but a whimper' over the coming decades [1]. He emphasized that bitcoin is not a stable store of value, noting that it 'just halved … for no particular reason in a strong economy,' which, in his view, undermines its reliability [1].
Grantham contrasted bitcoin's performance with that of gold, stating that gold has continued to deliver solid gains even after pulling back from its highs, whereas bitcoin has not proven itself as a useful asset for speculation or real-world utility [1]. He argued that bitcoin is not used for everyday transactions, such as buying dinner or paying at the supermarket, and instead claimed, 'What it does is allows crooks to move money around' [1].
The article also highlighted bitcoin's history of dramatic bear market crashes, with declines of at least 70% from its peak in every cycle [1]. Currently, bitcoin is trading about 52% below its October peak, hovering below $60,000, and there is a belief among many investors that the current price slump could persist for several more months [1].
No forward-looking statements or analyst opinions beyond Grantham's views were provided in the article.
CONCLUSION
Jeremy Grantham's renewed criticism of bitcoin underscores his belief that the cryptocurrency lacks intrinsic value and long-term viability. With bitcoin trading significantly below its recent peak and facing ongoing skepticism from prominent investors, market sentiment remains cautious regarding its future prospects.