Jeremy Grantham, co-founder of GMO, who once predicted the dot-com crisis in 2000 and the housing crisis in 2008, called Bitcoin (BTC) a useless speculative mechanism and predicted that it would gradually shrink over the next few decades

This seasoned strategist has built up his criticism by citing three flaws he sees in crypto. He argues that Bitcoin does not pay returns, has no stable value, and cannot be used in everyday life as a currency.

Proof of Work, Proof of Nothing

Grantham has strongly criticized Bitcoin’s proof-of-work system. He argued that the energy used to verify those transactions serves no economic purpose for society.

“Unnecessary proof shouldn’t be worth even a bucket of warm spit, and it certainly won’t be.”

He made a name for himself by making brave calls, and seeing around corners. Today Jeremy Grantham made a rare TV appearance on Squawk Box with a warning for investors. https://t.co/QNxCC0nioL pic.twitter.com/i5dpQRgV1Q

— Squawk Box (@SquawkCNBC) June 26, 2026

Bitcoin lacks the features of a currency and a store of value.

Besides the criticism about mining, he said Bitcoin cannot be used in practice as a currency. Ordinary users do not use it to pay for goods at supermarkets, and major investors do not conduct high-value transactions with Bitcoin. He added that without a functioning transaction system, this asset loses its legitimacy as money.

He also denied that Bitcoin has the qualities of a store of value, saying that unlike stocks, it does not pay dividends and does not generate cash flow. In his view, this leaves speculators with no anchor for fair pricing.

A critic with a record of proving

Grantham’s warning carries weight because he has previously been able to predict events with accuracy. He warned about the dot-com bubble before 2000 and forecast the U.S. housing crisis before 2008. Meanwhile, his latest warning about an AI stock bubble in the U.S. stock market further spells out this risk, as he estimates the shares could fall as much as 70%.

However, his timing isn’t always accurate. His warning about a major stock-market bubble in 2021 came too early, because the market kept rising before correcting in 2022.

His comments on Bitcoin came as BTC traded near $60,500, down sharply from a peak above $126,000 in late 2025. U.S. Bitcoin ETFs also saw net outflows of $6.35 billion within 30 days through mid-June, reflecting a slowdown in institutional demand.

Previously, Coinbase CEO’s view of Bitcoin also pointed to the cost of AI infrastructure as another key factor reshaping capital flows in the crypto market.

Grantham isn’t the only one expressing doubt. Peter Schiff also makes the bearish case along similar lines, saying Bitcoin has no real value.

Whether Bitcoin’s current price can hold at key support levels in Q3 of 2026 will be a test for both sides. Grantham expects this decline to unfold gradually over years or decades, rather than happening all at once.