Jeremy Grantham reiterated his long-standing criticism. Bitcoinpredicting that it will gradually become irrelevant over the next few decades.
The co-founder of the investment firm GMO and a longtime market commentator known for his advocacy against asset bubbles, said on CNBC’s “Squawk Box” Friday that Bitcoin is a “useless speculative” asset with no intrinsic value. He also said that Bitcoin has not outperformed in bull markets and doubts its viability.
“I think after years and years and decades and decades, it will go away, not with a sound, but with a sobbing sound,” he said. “It’s not a stable form of value, and in good times it just halved for no particular reason, so you can’t rely on it like that.”
He added that even after falling from its highs, gold has still seen solid gains over the same period.
Not only has Bitcoin not proven to be a speculative asset, it also offers no real-world utility, Grantham argued.
“People don’t use it to make serious transactions. They don’t use it to buy dinner or pay at the supermarket. … What it does is it allows criminals to move money,” he said.
Bitcoin has been notorious for dramatic bear market crashes over the years, dropping at least 70% from its peak every cycle. It is currently trading below $60,000, down about 52% from its October high, and many investors believe the current price slump could continue for several more months.
