Summary
- Billionaire investor Jeremy Grantham expresses doubt about the future of cryptocurrencies, labeling them as "useless" and primarily a "speculative mechanism."
- He pointed out Bitcoin's significant decline despite favorable economic conditions, emphasizing its shortcomings as a reliable store of value.
- Currently, Bitcoin is trading over 50% below its peak of $126,080.
Investor Jeremy Grantham, who co-founded the investment firm GMO, is not considering adding cryptocurrencies to his investment portfolio anytime soon.
In a recent interview on CNBC’s “Squawk Box”, Grantham described cryptocurrencies as a “useless, speculative mechanism.”
He remarked, “Over the years and decades, I suspect it will fade away—not with a bang, but with a whimper.”
Grantham emphasized Bitcoin's volatility as a store of value, highlighting its recent drop of 52% from the all-time high of $126,080 reached last October, even as the economy remains robust and gold has seen significant gains during the same period.
Gold achieved a new record of over $5,500 per ounce earlier this year, although it has since decreased by more than 25% to approximately $4,096.
He stated, “You can’t rely on it in that way. People don’t use it for significant transactions, nor do they use it to buy groceries.”
According to Grantham, Bitcoin facilitates illicit financial transactions, claiming it is “excellent for that purpose.”
While he acknowledged that blockchain technology could potentially revolutionize various sectors, he made it clear that his criticisms were specifically directed at Bitcoin and other cryptocurrencies.
Bitcoin has experienced a 17% decline over the past month, with its current trading price around $60,529.
Similarly, billionaire Mark Cuban recently voiced concerns about Bitcoin as a store of value, noting its underperformance relative to gold and stating, “it is not the hedge I expected it to be.” Cuban revealed that he has sold off most of his Bitcoin holdings as a result.