The Billionaire Who Predicted Bitcoin's Eventual Disappearance Names This as a Trustworthy Asset

"Extreme Price Volatility...Difficult to Trust," Grantham Says
On the AI Boom: "One of the Biggest Bubbles in History"

Renowned billionaire investor Jeremy Grantham has raised serious doubts about the long-term viability of bitcoin. He offered a pessimistic outlook, predicting that bitcoin will not collapse overnight but will gradually lose relevance over several decades and eventually disappear from the market.

According to Yonhap News, which cited a CNBC report on the 26th (local time), Grantham, the co-founder of U.S. asset management firm GMO, stated in an interview that "in the end, it will disappear."

He characterized cryptocurrency as a speculative asset with no intrinsic value or practical utility, deeming it unsuitable as a long-term investment target. He added, "Bitcoin will not end with a big explosion, but will instead quietly vanish over the course of several years or decades."

On the 25th, the Bitcoin price was displayed on the electronic billboard at Bithumb Lounge in Gangnam-gu, Seoul. Photo by Yonhap News

Grantham specifically highlighted bitcoin's extreme price volatility as a problem. He pointed out that even during periods of relatively favorable economic conditions, the price has plummeted by nearly half without any particular reason, indicating that it lacks the stability expected of a store of value. He emphasized, "A reliable store of value should not exhibit such movements."

In contrast, he offered a relatively positive assessment of gold. While acknowledging that gold is not a perfect investment asset, he explained that it is fundamentally different from bitcoin because it has been recognized as a store of value for thousands of years. In the past, Grantham has also stated that "gold is an asset with a 10,000-year history," expressing the view that it is far more trustworthy than bitcoin.

Yonhap News Agency

These remarks come as Grantham has recently been warning about overheated investment surrounding the artificial intelligence (AI) boom. While he acknowledged the technological value of AI itself, he diagnosed that the current investment fervor in AI-related stocks in the U.S. market could be one of the biggest bubbles in history. He repeatedly emphasized that technological innovation and investment value do not always align.

Born in 1938, Grantham is known as a prominent ‘bubble warning theorist’ who has employed long-term investment strategies based on value investing and mean reversion theory. He gained recognition for early warnings about Japan’s asset bubble, the dot-com bubble, and the overheating of the U.S. housing market, and he continues to caution against potential overvaluation in the U.S. stock market and AI-related sectors.

This content was produced with the assistance of AI translation services.