In short
- Billionaire Jeremy Grantham is skeptical of crypto’s place in the financial world, calling it “useless” and “an illusion.”
- Grantham noted Bitcoin’s recent fall despite the economic crisis, highlighting its volatility as a store of value.
- Bitcoin recently traded more than 50% off its all-time high of $126,080.
Billionaire investor Jeremy Grantham won’t be adding crypto to his portfolio anytime soon.
Grantham, co-founder of investment firm GMO, expressed his views on the popular financial group in an appearance on Price CNBC“Squawk Box” On Friday, he called crypto “a useless, speculative system.”
“Years and years, decades and years – it will diminish, I suspect,” Grantham said of his future. “Not with a bang, but with a whimper.”
Grantham beamed Bitcoin is Unstable as a stock market, reflecting its recent decline – a drop of 52% from its all-time high of $126,080 set last October, despite the economic crisis and gold making huge gains at the same time.
The volume of goods and commodities rose to a new always high above $5,500 an ounce earlier this year, but has since fallen more than 25% to trade at $4,096.
“You can’t trust it that way,” he said of Bitcoin. “People don’t use it to do big shopping, they don’t use it to buy their dinner and pay in supermarkets.”
Instead he said it “allows fraudsters to move money around without leaving a margin,” adding that “it’s smart about that.”
Grantham acknowledged that blockchain railways could play a revolutionary role in the future, but made it clear that his comments were about Bitcoin and cryptocurrencies.
Bitcoin has fallen 17% in the last month of trading, recently trading at $60,529.
Last month, billionaire investor Mark Cuban did the same criticized Bitcoin’s role as a store of valueabout its recent underperformance against gold, saying “it’s not the fence I expected it to be.” Cuban added that he has sold most of his BTC because of this.
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