Billionaire investor Jeremy Grantham said cryptocurrency is a useless speculative mechanism that will eventually disappear over the coming decades [1].
Grantham's assessment reflects a persistent divide between traditional value investors and the digital asset market. As a co-founder of GMO, his view carries weight with institutional investors who prioritize intrinsic value over market momentum.
Speaking during an interview on CNBC’s "Squawk Box" program on June 26, 2026 [1], Grantham said the fundamental nature of digital currencies is flawed. He said that cryptocurrency lacks intrinsic value and functions primarily as a speculative asset [2]. Because it does not produce cash flow or serve as a tangible utility, he expects the trend to fade [2].
Regarding the most prominent digital currency, Grantham said, "Bitcoin will dwindle away with a whimper" [1]. He said that the asset's reliance on speculative demand makes it unsustainable in the long term.
Grantham's critique centers on the belief that assets must have a basis in real-world productivity to maintain value. He said the current crypto ecosystem is a "useless, speculative mechanism" [2]. This perspective contrasts with proponents who view Bitcoin as digital gold, or a hedge against traditional currency devaluation.
Throughout the discussion, the investor said that the lack of an underlying business model or physical asset makes the volatility of the market a symptom of its instability [2]. He said that the eventual realization of this lack of value will lead to the gradual decline of the industry [1].
“Crypto is a useless, speculative mechanism.”
This critique reinforces the 'value investing' philosophy, which posits that any asset not producing a cash flow or providing a tangible service is a bubble. By predicting a slow decline rather than a sudden crash, Grantham suggests that cryptocurrency will lose relevance as a financial tool rather than suffering a single catastrophic event.
