British billionaire says you should avoid Bitcoin and all crypto – and his explanation is simple

Despite the best protestations of those on the digital bandwagon, billionaire Jeremy Grantham argues that investing in cryptocurrency is not the way to go.

Grantham, who was born in Hertfordshire, is the co-founder of Boston-based asset management company GMO LLC as well as the chairman of the Grantham Foundation for the Preservation of the Environment, and spoke to podcaster Steven Bartlett last month about the hollow hype surrounding Bitcoin.

For readers who aren’t well up on the phenomenon of crypto: it is a virtual type of currency that operates through a decentralised ledger known as a blockchain. This computerised system removes all involvement from authorities, governments and banks in your transactions.

Its value was once so underestimated that Lily Allen effectively kissed goodbye to a £12 billion fortune.

As for Grantham’s stance on the world of crypto, he claimed on The Diary of a CEO podcast that it’s all just a smokescreen for people who view themselves as above the law.

“How much crypto do you own?” asked host Bartlett, who currently stars on the long-running BBC series Dragons’ Den.

“None,” answered his smirking guest, before noting that he would never purchase any or advise anyone else to do so.

“I think it’s an unnecessary piece of nonsense,” said Grantham. “It facilitates nothing except criminals moving money so they can’t be seen.

“It’s not a store of value since it bounces around all over the place – just down from 120 to 60, because it felt like it. So it’s not stable, it’s volatile as hell, it’s not used conveniently as a medium of exchange.

“You can’t go into a shop and use it easily. It does one thing very, very well; it’s a means of speculating beautifully.”

Steven Bartlett recently welcomed billionaire Jeremy Grantham onto his podcast (The Diary of a CEO/YouTube)

Then came the mother of all questions from Bartlett: “Do you think Bitcoin’s gonna go to 0?”

For context, at the time of writing, the price of Bitcoin in GBP stands at £46,881.04.

“In the distant future, yes, it will certainly go to 0. But it may take a long time,” reckoned Grantham, noting how ‘everything’ will return to 0 in the distant future.

In the US, one Bitcoin is worth a stunningly low (compared to how much they used to be) $62,875.86 right now, which The Big Short’s Michael Burry published a warning about just recently.

According to him, should the value reduce to $50k or below, Bitcoin miners will start to go bankrupt and this could trigger ‘a collateral death spiral’ and then ‘tokenised metals futures would collapse into a black hole with no buyer’.