Billionaire Investor Jeremy Grantham Calls Bitcoin a Useless, Speculative Asset. Here's Why He's Wrong.
Billionaire investor Jeremy Grantham calls Bitcoin a useless, speculative asset, but the author argues that he is wrong on multiple counts.
Intelligence analysis by Llama
Jeremy Grantham, a billionaire investor, has criticized Bitcoin, calling it a useless, speculative asset. However, the author argues that Grantham's understanding of Bitcoin is incomplete and that his criticisms are based on outdated information.
Imagine you have a special coin that can't be printed or made faster than it is right now. This coin is like a rare collectible that people want to own because it's hard to get. Even if some people think it's not worth much, others will still want to buy it because it's unique. This is kind of like how Bitcoin works. It's a special coin that people want to own because it's hard to get, and its value will likely go up over time.
Analysis
A $60B Vote of Confidence
Jeremy Grantham, the billionaire co-founder of GMO, has been a vocal critic of Bitcoin. In a recent interview, he called the coin a "useless, speculative" asset that will "dwindle away, I suspect, not with a bang, but a whimper" over the coming decades. Grantham is not alone in his views, as Warren Buffett and Charlie Munger have also expressed similar sentiments. However, the author argues that Grantham's understanding of Bitcoin is incomplete and that his criticisms are based on outdated information.
One core claim that Grantham makes is that Bitcoin allows fraudsters to move money around. However, this claim is directly refuted by Chainalysis, the leading blockchain analytics company, which reported in its 2026 Crypto Crime Report that stablecoins now account for 84% of illicit on-chain volume. This suggests that criminals have migrated away from Bitcoin's permanent and publicly searchable ledger toward other assets.
Grantham's stronger point is that Bitcoin's price collapsed after October 2025 despite a strong stock market. However, owning Bitcoin was never a bet on stability. Its fundamental value rests on two pillars: a hard-capped supply of 21 million BTC that will ever exist, and the regular halving of the mining reward. Over time, when those pillars do their job, they create a situation in which net demand from long-term buyers has historically outpaced new supply from miners and forced sellers.
In conclusion, Grantham's questioning of the coin's volatile price is fair, but it misses the larger points: Bitcoin can't be printed, and it can't be produced faster than it is right now -- and both of those statements will remain true. The social proof of its value isn't visible in the coin's tokenomics or other fundamentals, but as long as there's at least some population willing to buy it, its supply schedule should take care of the price. Bitcoin will thus most likely absorb Grantham's critiques indefinitely while its price grinds higher.
Why the Critique Doesn't Hold Up
Grantham's critique of Bitcoin is based on a misunderstanding of the asset's fundamental value. He argues that Bitcoin's price collapsed after October 2025 despite a strong stock market, but this is not a reason to dismiss the asset's potential. In fact, Bitcoin's price has historically been influenced by a variety of factors, including its supply schedule and the demand for it from long-term buyers.
The Road Ahead
In conclusion, Grantham's critique of Bitcoin is based on a misunderstanding of the asset's fundamental value. While his questioning of the coin's volatile price is fair, it misses the larger points: Bitcoin can't be printed, and it can't be produced faster than it is right now -- and both of those statements will remain true. The social proof of its value isn't visible in the coin's tokenomics or other fundamentals, but as long as there's at least some population willing to buy it, its supply schedule should take care of the price. Bitcoin will thus most likely absorb Grantham's critiques indefinitely while its price grinds higher.
Key points
- Jeremy Grantham, a billionaire investor, has criticized Bitcoin, calling it a useless, speculative asset.
- However, the author argues that Grantham's understanding of Bitcoin is incomplete and that his criticisms are based on outdated information.
- Bitcoin's fundamental value rests on two pillars: a hard-capped supply of 21 million BTC that will ever exist, and the regular halving of the mining reward.
- The social proof of Bitcoin's value isn't visible in the coin's tokenomics or other fundamentals, but as long as there's at least some population willing to buy it, its supply schedule should take care of the price.
If Bitcoin's price continues to grind higher, it could attract more investors and increase its value even further. This could lead to a surge in demand for the coin, causing its price to rise even more. However, it's worth noting that the article is too thin to support a meaningful optimistic outlook.
If Bitcoin's price continues to be volatile, it could lead to a decline in investor confidence and a subsequent decrease in demand for the coin. This could cause its price to drop even further, making it less attractive to investors. However, it's worth noting that the article cannot support a meaningful downside.