An experienced investor famous for correctly forecasting the bursting of the 2000 dot-com bubble and the 2008 housing market crash has once again voiced his deep-seated skepticism towards cryptocurrencies.
In an appearance on the "Diary of a CEO" podcast hosted by Steven Bartlett this Thursday, Jeremy Grantham declared that Bitcoin (BTC) is "destined to go to zero," labeling it as "a lot of nonsense" that serves "no useful purpose" beyond aiding criminals in moving money undetected.
Grantham stated he has never owned Bitcoin and has no plans to do so. The billionaire also clarified that his comments represent his personal views and not the official stance of GMO, the Boston-based asset management firm he co-founded, which oversees approximately $80 billion.
Consistent Criticism of Bitcoin's Role
The investor dismissed Bitcoin's function as a store of value, noting its price has fallen to around $60,000 for reasons that "seem non-existent." He argued it fails as a medium of exchange because it is "very hard to spend in shops." According to Grantham, the only thing Bitcoin excels at is serving as a speculative instrument.
When asked directly if Bitcoin would fall to zero, Grantham affirmed it "will go to zero," though he conceded "it may take a long time," adding that "in the long run, everything goes to zero."
The following day, he appeared on CNBC's "Squawk Box" to reiterate his stance, describing cryptocurrencies as a "useless speculative scheme" and predicting their eventual demise—"not with a bang, but a whimper."
During that interview, Grantham acknowledged that the underlying blockchain technology might play a transformative role in the future, but emphasized his criticism is directed squarely at Bitcoin and other cryptocurrencies themselves.
Market Context for the Warnings
These remarks come as Bitcoin trades near $60,000, having fallen more than 50% from its all-time high of approximately $126,000 in October of last year, lending further weight to Grantham's critique of the asset's volatility.
His warnings carry significant weight in financial circles due to his track record of accurately predicting major market bubbles, even though his market timing calls have not always been perfect.
At the time of reporting, Bitcoin's price was down a marginal 0.9%. On the Stocktwits platform, sentiment among retail traders has shifted from the "bearish" zone back to "neutral," while discussion volume remains at "normal" levels.
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