SUMMARYBitcoin fell to $59,948 on Friday, down 19% for June and more than 50% below its October peak of $124,310. Jeremy Grantham, cofounder and chief investment strategist of GMO, said on CNBC that bitcoin is a speculative asset with no intrinsic value and predicted it will gradually fade into irrelevance over decades. He also argued that bitcoin lacks practical everyday use and cited gold’s stronger long-term performance.
Friday 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."