- Jeremy Grantham said that bitcoin and cryptocurrencies will “wither away” over time.
- The investor called digital assets a speculative instrument, but acknowledged the potential of blockchain technology.
- His comments came amid a prolonged capital outflow from spot bitcoin ETFs and the asset’s price falling below $60,000.
GMO co-founder and billionaire Jeremy Grantham sharply criticized bitcoin and cryptocurrencies, saying they have no long-term value and will gradually lose relevance. He made the remarks on CNBC’s broadcast.
The investor’s comments came during a difficult stretch for the market: over the week, spot bitcoin ETFs recorded $1.79 billion in outflows, while the leading cryptocurrency’s price dropped below $60,000, triggering $1 billion in liquidations.
‘Useless Speculative Mechanism’
During the interview, Grantham said he does not plan to invest in crypto assets.
“Years and years, decades and decades—it will dwindle away, I suspect. Not with a bang, but with a whimper,” he said, commenting on the future of cryptocurrencies.
The billionaire also called digital assets “a useless speculative mechanism.”
In his view, bitcoin has not lived up to expectations as a store of value. The investor noted that the asset has fallen more than 50% from its all-time high of over $125,000, reached last year, despite favorable macroeconomic conditions. Meanwhile, gold over the same period set a new all-time high, surpassing $5,500 per ounce.
“You can’t depend on it in that way. People don’t use it to make serious trades, they don’t use it to buy their dinner and pay at the supermarket,” Grantham noted.
Separately, he said that bitcoin “allows criminals to move money without leaving a trace,” adding that “in that, it really is brilliant.”
At the same time, the investor emphasized that his criticism does not apply to blockchain technology itself.
Market Views Remain Polarized
Grantham’s remarks contrast with the stance of many participants in the crypto industry and major financial institutions.
Earlier, Blockstream CEO Adam Back said that bitcoin could rise to $500,000–$1 million by the end of the current halving cycle in 2028, even without new major catalysts.
Meanwhile, Mexican billionaire Ricardo Salinas Pliego, founder and chairman of Grupo Salinas, said that bitcoin accounts for up to 80% of his investments.
At the same time, BlackRock recommended viewing bitcoin as a diversification tool and allocating around 1%–2% of an investment portfolio to it.
However, similar criticism of bitcoin to Grantham’s was recently voiced by Bridgewater Associates founder Ray Dalio, who said that bitcoin cannot replace gold and, overall, falls short of the precious metal as a store of value.
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