British billionaire investor Jeremy Grantham has argued that Bitcoin will gradually lose its significance over time and that, in the long run, its value could approach zero. Speaking in an interview on CNBC, Grantham described Bitcoin as non-functional and highly speculative.
Sharp criticism directed at Bitcoin
As a co-founder of investment firm GMO and well-known for identifying financial bubbles, Grantham reiterated his warnings in his latest assessment of Bitcoin. Instead of a sudden crash, he predicted a slow, prolonged decline in value stretched across several years. Grantham believes this descent will not come with dramatic collapses, but rather through a gradual drop in relevance.
Jeremy Grantham maintains that rather than experiencing a sudden crash, Bitcoin will steadily lose strength over the years and ultimately become irrelevant.
He also dismissed the argument that Bitcoin is a reliable hedge or a robust store of value. Pointing to times when the cryptocurrency’s price halved even amid strong economic conditions, Grantham made clear he does not see Bitcoin as a stable measure of value.
Gold comparison and debate over practical use
Grantham highlighted that gold saw a strong rally over the same period and used this comparison to challenge the narrative that Bitcoin offers protection in times of crisis. According to him, Bitcoin’s price swings are pronounced and difficult to predict, undermining its credibility as a safe haven asset.
He further argued that Bitcoin is not used as actual money in everyday economic life. People rarely use it for routine transactions or supermarket shopping, Grantham observed, concluding that Bitcoin’s practical functionality remains highly questionable.
In Grantham’s view, Bitcoin is neither a trustworthy store of value nor a widely used payment mechanism in daily life—leaving its basic function ambiguous.
Criticism of the network structure and underlying value
Grantham also took aim at Bitcoin’s proof-of-work system, which underpins the network’s security. He highlighted the substantial energy consumption required for Bitcoin mining, asserting that this setup fails to create something economically valuable.
Glossary: Proof-of-work is a consensus mechanism where miners use computational power to validate transactions on the blockchain. The Bitcoin network relies on this system, which has sparked debate due to its high energy usage in exchange for network security.
According to Grantham, the Bitcoin ecosystem is driven mainly by price expectations rather than tangible financial fundamentals. He stressed that it does not generate dividends or represent an asset that produces cash flow or has physical backing, arguing that the system is largely based on collective belief.
Grantham’s remarks have reignited longstanding debates over Bitcoin’s practical usage, its effectiveness as a store of value, and the sustainability of its underlying technology. The statements once again spotlight the divide between traditional finance circles and digital asset proponents when it comes to evaluating the fundamental value of crypto assets.
