Jeremy Grantham, the GMO co-founder renowned for predicting the 2000 dot-com crash and 2008 housing collapse, has branded Bitcoin a 'useless, speculative mechanism' that will fade over decades. In a harsh critique, Grantham cited three fundamental failures: Bitcoin pays no yield, lacks stable value, and fails as a daily currency. He specifically attacked proof-of-work, calling it 'unnecessary work' that wastes energy with no economic benefit. Grantham argued that Bitcoin cannot serve as money because it's not widely accepted for transactions, nor as a store of value since it generates no dividends or cash flow. This skepticism carries weight given his track record, though his timing has occasionally been off, such as his early 'epic bubble' call on US stocks in 2021. The remarks come as Bitcoin trades near $60,500, sharply down from its late-2025 peak above $126,000, with US spot Bitcoin ETFs experiencing $6.35 billion in outflows over 30 days. Grantham joins other skeptics like Peter Schiff, predicting a gradual decline over years or decades.

Key facts

• Grantham calls Bitcoin a 'useless, speculative mechanism' that will fade over decades.
• He criticizes proof-of-work as energy-wasting with no economic benefit.
• Bitcoin fails as money (not widely accepted) and store of value (no yield).
• BTC trades near $60,500, down from $126,000 peak; ETF outflows reach $6.35B.
• Grantham's track record includes calling 2000 dot-com and 2008 housing crashes.

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