On June 27, billionaire investor and co-founder of GMO, Jeremy Grantham, renewed his long-standing criticism of Bitcoin, declaring it a 'useless speculation' asset and predicting it will 'fade away rather than crash.' In an interview with CNBC, Grantham argued that Bitcoin lacks intrinsic value and will gradually become irrelevant over the coming years or even decades.
Grantham: Bitcoin Fails as a Store of Value and Has No Real-World Utility
Grantham pointed out that Bitcoin's extreme price volatility makes it unreliable as a store of value. Even during a strong economic environment, Bitcoin has seen its price roughly halved from its October highs without any clear reason. In contrast, gold, despite its own pullback from peaks, has posted solid gains over the same period. Grantham believes that no one can rely on an asset that could plummet at any moment for wealth preservation.
Beyond the store-of-value question, Grantham questioned Bitcoin's real-world usefulness. 'People don't use it for serious transactions. They don't pay for dinner or supermarket shopping with it,' he said. 'Its role is to help criminals move money.' This echoes long-standing regulatory concerns about cryptocurrencies being used for illicit activities.
Historical Drawdowns: Deep Corrections Are a Bitcoin 'Standard'
Grantham's bearish view is not without historical precedent. Bitcoin is infamous for its violent bear markets: in almost every cycle, the price has fallen at least 70% from the peak. Currently, Bitcoin is down about 52% from its October high, trading around $60,000. Many market participants expect this sluggish period to persist for several more months.
While Grantham's 'gradual death' prophecy contrasts sharply with the optimistic narratives of long-term Bitcoin believers, his criticisms regarding volatility and lack of utility resonate within traditional finance circles. The crypto community has largely shrugged off the remarks, as similar critiques have been made for years.
Background on Jeremy Grantham and GMO
Jeremy Grantham is the co-founder of GMO, a Boston-based asset management firm with over $60 billion in assets under management. He is known for his long-term market forecasts and correct calls on asset bubbles. His criticism of Bitcoin is consistent with his value-investing philosophy, which emphasizes tangible assets and cash flows.
Market Context
Bitcoin's recent price action has been lackluster. After hitting an all-time high around $125,000 in March 2025 (according to the timeline implied by the interview), the asset has corrected to $60,000. The 52% decline aligns with Grantham's observation of 'random halvings.' Despite some institutional adoption, the lack of clear catalysts has kept prices depressed. Meanwhile, gold has rallied to new highs, further undermining the 'digital gold' narrative.
Grantham's interview adds a prominent voice to the chorus of skeptics, but the ultimate test remains Bitcoin's ability to recover and find real-world use cases beyond speculation.