Bitcoin Drops Again. Skeptical Investment Strategist Calls It 'Useless'
5 98Friday Bitcoin closed at just $59,948 — dropping 19% just for June and more than 50% lower than its record high in October of $124,310.
To commemorate the occasion CNBC interviewed long-time bitcoin skeptic Jeremy Grantham, reporting that the 87-year-old cofounder/chief investment strategist of the massive asset-management firm GMO is "predicting it will gradually fade into irrelevance over decades." [The] longtime market commentator known for his calls on asset bubbles said bitcoin is a "useless, speculative" asset without intrinsic value, speaking on CNBC's "Squawk Box" Friday. He also said bitcoin hasn't outperformed during a bull market and questioned its practical use. "[Over] years and years, decades and decades, it will dwindle away, I suspect — not with a bang, but a whimper," he said. "It's not a stable form of value — it just halved ... for no particular reason in a strong economy, so you can't depend on it in that way."
He added that gold has still delivered solid gains over the same period, even after pulling back from its highs. Bitcoin not only hasn't proved itself as a useful asset to speculate on, it doesn't provide any real world utility either, Grantham argued. "People don't use it to make serious trades, they don't use it to buy their dinner and pay at the supermarket. ... What it does is allows crooks to move money around," he said.
Bitcoin has become notorious over the years for its dramatic bear market crashes, which has taken it down at least 70% from its peak in every cycle.
The article adds that "many investors believe the current price slump could drag on for several more months."
5 comments
Re:something is useless (Score: 5, Interesting)
by Vlad_the_Inhaler ( 32958 ) on Saturday June 27, 2026 @04:35AM (#66212692)
It's starting to look as though this vote of confidence for bitcoin [whitehouse.gov] was the kiss of death, although the rot really set in around 3 months later.
Re:something is useless (Score: 5, Funny)
by phantomfive ( 622387 ) on Saturday June 27, 2026 @06:51AM (#66212746)
Trump is known for his competence. He has a lot of skills which allows him to meddle in his underlings' tasks to help them do it better. I also admire Kim Un for his same approach to using his skillset effectively.
Re:something is useless (Score: 5, Insightful)
by ArchieBunker ( 132337 ) on Saturday June 27, 2026 @10:56AM (#66212870)
I suspect Kim Jong Un got better grades in college than our dear leader
Re:He is largely correct (Score: 5, Informative)
by swillden ( 191260 ) on <shawn-ds@willden.org> on Saturday June 27, 2026 @10:48AM (#66212868)
There are two curves, a supply curve and a demand curve. Where they cross is the price. This is extremely simplified :P
In general: the price is as high as the seller can get away with. "Supply and Demand" as "basic economics" only works in niche cases.
Where the curves cross is the highest profit the seller can get away with. This is precisely how the curves are defined.
When talking about supply and demand, people commonly misunderstand that both curves are fundamentally about price, not availability or desirability. The supply curve is "How much is available at each price level". The demand curve is "How much will be bought at each price level". At prices above or below the intersection point, sellers are failing to maximize their profit.
It's profit-maximization that pushes prices to the supply/demand intersection point.
Note that monopoly or monopsony don't invalidate the supply/demand curves, they just alter them. Even with a perfect monopoly, the supply and demand curves still exist; at different price levels the monopolist can obtain more or less to sell, and at different price levels the buyers will purchase more or less. Supply and demand curves don't work or not work in different market conditions. Supply and demand curves always hold, non-competitive market conditions just shift the curves. Even government price setting doesn't change this fundamental reality... it makes price ranges legally inaccessible, which just alters the curve shapes by adding legal risk to the "price".
Supply/demand curves aren't a prediction, they're an observation, and the basic concept is near-tautological.
Bitcoin is worth nothing but hot air ! (Score: 5, Informative)
by bsdetector101 ( 6345122 ) on Saturday June 27, 2026 @06:02AM (#66212716)
What it does is allows crooks to move money around," he said. This is why it still exists.