Key Takeaways
- • Jeremy Grantham, GMO co-founder and longtime market strategist, predicts Bitcoin will "dwindle away with a whimper" over decades, characterizing it as a "useless, speculative" asset without intrinsic value or practical utility.
- • Grantham argues Bitcoin lacks real-world functionality—citing that people do not use it for serious transactions, retail purchases, or supermarket payments—while serving primarily as a mechanism for illicit money movement.
- • The veteran investor highlights Bitcoin's extreme volatility as disqualifying evidence of viability, noting the asset has declined at least 70% from its peak in every market cycle and currently trades approximately 52% below its October 2025 peak near $60,000.
- • Grantham contrasts Bitcoin unfavorably with gold, which he notes has delivered solid long-term gains despite recent pullbacks, underscoring his view that Bitcoin lacks the stability properties required for a durable store of value.
- • The critique reflects Grantham's long-standing skepticism of cryptocurrency; he maintains Bitcoin has not outperformed during bull markets and offers investors no compelling speculative or fundamental investment rationale.
Summary
Jeremy Grantham, co-founder of investment firm GMO and a prominent voice on asset bubbles and market valuations, renewed his extended critique of Bitcoin on CNBC's "Squawk Box" on June 26, 2026, predicting the cryptocurrency will gradually fade into irrelevance over the coming decades. Grantham characterized Bitcoin as a "useless, speculative" asset fundamentally lacking intrinsic value, arguing that neither the bull market conditions nor real-world demand support its continued relevance as an investment vehicle.
Central to Grantham's thesis is the absence of practical utility. He emphasized that Bitcoin has not gained meaningful adoption for legitimate commerce, stating that "people don't use it to make serious trades, they don't use it to buy their dinner and pay at the supermarket." Instead, Grantham contends that Bitcoin's primary function is facilitating illicit financial flows, limiting its legitimate economic purpose. This assessment directly challenges proponents' claims that cryptocurrency represents a transformative payment or store-of-value mechanism.
Grantham also grounds his skepticism in empirical volatility patterns. Bitcoin has experienced declines exceeding 70% from peak valuations in every market cycle, according to historical data. As of the date of his remarks, Bitcoin traded approximately 52% below its October 2025 peak, hovering below $60,000, with many institutional investors anticipating further downside pressure in the months ahead. This pattern of extreme drawdowns, coupled with price movements that Grantham notes occurred "for no particular reason in a strong economy," undermines Bitcoin's credibility as a stable store of value or reliable speculative instrument.
In contrasting Bitcoin with alternative assets, Grantham highlighted gold's superior long-term performance track record. Despite recent pullbacks from highs, gold has delivered consistent real returns across extended periods, providing what Grantham views as the stability and utility Bitcoin fundamentally lacks. His conclusion—that Bitcoin will "dwindle away, I suspect — not with a bang, but a whimper"—reflects a conviction that the cryptocurrency will gradually lose relevance and investor interest as the market recognizes its speculative nature and lack of practical application.
Central to Grantham's thesis is the absence of practical utility. He emphasized that Bitcoin has not gained meaningful adoption for legitimate commerce, stating that "people don't use it to make serious trades, they don't use it to buy their dinner and pay at the supermarket." Instead, Grantham contends that Bitcoin's primary function is facilitating illicit financial flows, limiting its legitimate economic purpose. This assessment directly challenges proponents' claims that cryptocurrency represents a transformative payment or store-of-value mechanism.
Grantham also grounds his skepticism in empirical volatility patterns. Bitcoin has experienced declines exceeding 70% from peak valuations in every market cycle, according to historical data. As of the date of his remarks, Bitcoin traded approximately 52% below its October 2025 peak, hovering below $60,000, with many institutional investors anticipating further downside pressure in the months ahead. This pattern of extreme drawdowns, coupled with price movements that Grantham notes occurred "for no particular reason in a strong economy," undermines Bitcoin's credibility as a stable store of value or reliable speculative instrument.
In contrasting Bitcoin with alternative assets, Grantham highlighted gold's superior long-term performance track record. Despite recent pullbacks from highs, gold has delivered consistent real returns across extended periods, providing what Grantham views as the stability and utility Bitcoin fundamentally lacks. His conclusion—that Bitcoin will "dwindle away, I suspect — not with a bang, but a whimper"—reflects a conviction that the cryptocurrency will gradually lose relevance and investor interest as the market recognizes its speculative nature and lack of practical application.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.