Bitcoin has spent much of the past decade defying skeptics, surviving multiple crashes, regulatory crackdowns, and repeated predictions of its demise. But one of Wall Street’s most well-known market bears believes the cryptocurrency’s long-term future is still bleak.
Billionaire investor Jeremy Grantham says bitcoin is ultimately headed toward irrelevance, arguing that the world’s largest cryptocurrency remains a speculative asset with little practical value despite years of growing adoption.
His latest comments come as bitcoin continues to recover from another sharp decline, once again reigniting the long-running debate over whether digital assets are becoming a permanent part of the global financial system or simply another speculative bubble waiting to burst.
Grantham Predicts a Slow Fade for Bitcoin
Jeremy Grantham, co-founder of investment management firm GMO and one of Wall Street’s most recognizable voices on asset bubbles, renewed his criticism of bitcoin during an appearance on CNBC’s Squawk Box.
Rather than predicting a dramatic collapse, Grantham believes bitcoin’s relevance will slowly diminish over time.
“[Over] years and years, decades and decades, it will dwindle away, I suspect — not with a bang, but a whimper,” Grantham said.
According to Grantham, bitcoin has failed to demonstrate the characteristics investors should expect from a reliable store of value.
“It’s not a stable form of value,” he said, noting that the cryptocurrency has experienced dramatic price swings despite a relatively strong economic backdrop.
His criticism reflects a view he has maintained for years that cryptocurrencies are driven primarily by speculation rather than underlying economic value.
Why Grantham Says Bitcoin Has No Intrinsic Value
One of Grantham’s central arguments is that bitcoin lacks intrinsic value because it does not produce income, generate cash flow, or serve a broad economic purpose.
He described bitcoin as a “useless, speculative” asset and questioned whether it provides meaningful utility beyond speculative trading.
According to Grantham:
- Bitcoin is rarely used for everyday purchases.
- Businesses generally do not rely on it for commercial transactions.
- Most ownership remains investment-focused rather than utility-driven.
He also argued that bitcoin’s primary real-world use has been facilitating anonymous money transfers.
“People don’t use it to make serious trades, they don’t use it to buy their dinner and pay at the supermarket,” Grantham said. “What it does is allows crooks to move money around.”
While supporters point to growing institutional adoption and expanding payment infrastructure, Grantham remains unconvinced that these developments materially change bitcoin’s long-term investment case.
Bitcoin’s Volatility Remains a Key Concern
Bitcoin’s price history has been defined by enormous rallies followed by equally dramatic declines.
Throughout its history, bitcoin has suffered multiple bear markets that erased more than 70% of its value before eventually recovering to new highs.
At the time of Grantham’s comments, bitcoin remained roughly 52% below its October peak, with many investors expecting continued volatility over the coming months.
For critics like Grantham, those repeated boom-and-bust cycles undermine bitcoin’s argument as a dependable store of wealth.
His view contrasts sharply with supporters who argue that long-term holders have still significantly outperformed most traditional asset classes despite the volatility.
Gold Still Wins, Grantham Says
While dismissing bitcoin, Grantham continues to favor gold as a more established store of value.
He noted that even after pulling back from recent highs, gold has continued delivering strong long-term performance.
Unlike bitcoin, gold has thousands of years of history as a monetary asset and continues to be widely held by central banks, governments, and institutional investors.
For investors seeking protection against inflation or financial instability, Grantham believes gold remains the superior alternative.
Wall Street Remains Deeply Divided
Grantham’s latest remarks highlight the growing divide among professional investors.
Some of the world’s largest asset managers, banks, and corporations have embraced bitcoin in recent years, particularly following the launch of U.S. spot bitcoin ETFs and increasing institutional participation.
Others remain skeptical, arguing that bitcoin’s price is driven largely by investor sentiment rather than fundamental economic value.
The debate has only intensified as institutional ownership has grown.
Supporters argue that broader adoption by pension funds, hedge funds, and financial advisors strengthens bitcoin’s long-term outlook.
Critics counter that wider ownership does not solve the underlying question of intrinsic value.
What Investors Should Watch
For investors, Grantham’s comments serve as another reminder that bitcoin remains one of the market’s most polarizing assets.
Those bullish on cryptocurrency point to increasing institutional adoption, expanding regulatory clarity, and bitcoin’s fixed supply as reasons it could continue appreciating over the long run.
Skeptics argue that its extreme volatility, uncertain practical use, and dependence on investor demand make it fundamentally different from traditional investments like stocks, bonds, or income-producing real estate.
Regardless of which view ultimately proves correct, bitcoin’s future will likely continue to be shaped by a combination of institutional adoption, regulatory developments, macroeconomic conditions, and investor sentiment.
For now, Jeremy Grantham remains firmly convinced that bitcoin’s story ends not with a dramatic collapse, but with a gradual loss of relevance that plays out over decades.
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