British billionaire investor Jeremy Grantham argued that Bitcoin will lose its importance over time and its value will approach zero in the long term. Speaking on the program he attended on CNBC, Grantham described Bitcoin as a dysfunctional and speculative tool.
Harsh criticism against Bitcoin
Grantham, one of the founding partners of GMO, is known for his warnings about bubbles in financial markets. In his last assessment, he predicted not a sudden collapse for Bitcoin, but a gradual decline over years. According to him, this process will proceed not with a sharp break, but with a gradual decrease in its influence.
Jeremy Grantham argues that rather than experiencing a sudden collapse, Bitcoin will gradually lose power over the years and eventually become irrelevant.
Grantham also challenged the notion that Bitcoin is a reliable hedge or a solid store of value. Reminding that the price can halve in a short time despite strong economic conditions, the investor stated that the asset cannot be seen as a stable measure of value for this reason.
Gold comparison and usage discussion
The investor also emphasized that gold recorded a strong rise in the same period. With this comparison, he objected to the thesis that Bitcoin is a tool that protects against crises. According to Grantham, the fact that price movements are sharp and difficult to predict weakens this narrative.
Grantham also said that Bitcoin is not used as real money in daily economic life and stated that people do not widely shop with this asset. Claiming that its use in grocery expenses or ordinary payments is limited, the investor stated that the practical function of Bitcoin is therefore controversial.
Grantham argued that Bitcoin is neither a reliable store of value nor a widely used means of payment in daily life, so its basic function remains unclear.
Network structure and core value criticism
Grantham also targeted the proof-of-work model that secures the Bitcoin network. Stating that this structure requires high energy consumption, the investor argued that the system does not produce any economically meaningful value.
Mini-dictionary: Proof-of-work is a consensus method in which miners use computational power to verify transactions on the blockchain. The Bitcoin network works with this model and brings with it the controversy of high energy consumption in exchange for security.
According to the famous investor, the Bitcoin ecosystem is based on price expectations rather than concrete financial fundamentals. Stating that it does not produce dividends and does not represent a physical or cash flow-generating asset, Grantham argued that the current structure is largely based on belief.
Grantham’s evaluations brought long-standing debates about Bitcoin’s usage area, store of value and network structure to the agenda again. The statements once again revealed the difference of opinion between traditional financial circles and digital asset advocates, especially regarding the fundamental value of crypto assets.
