Historian who „predicts bubbles“ says Bitcoin has value based on faith that someone will buy more expensive

For the legendary investor, the real value of Bitcoin is „null“.

Jeremy Grantham is one of the best known investors in the world, having a well respected opinion regarding the financial market. In a recent interview with Bloomberg he demonstrated that he is not a big fan of Profit Revolution stating that the currency is completely based on faith and that its real value is „null“.

The investor is a very important name in the financial market, being a historian of big bubbles. He is recognized as an investor with high knowledge in different stock and commodity markets, one of the great highlights of his career is how he predicted different financial bubbles in recent decades.

He is also co-founder of GMO, one of the largest asset and investment management companies in the world.

Curiously, he is also a critic of how the government deals with financial crises, but still does not seem to have liked Bitcoin as a second option.

„Bitcoin’s value is in the ‚bigger fool'“.

In his commentary, presented in a short video on Bloomberg’s website, Grantham was asked if he saw any future in Bitcoin with the growing number of investors that are coming to the market with the new price high that the asset has presented since the beginning of 2021.

Grantham said that it is not difficult to understand the real value of Bitcoin, as it is „Nil“ (null, in radio communication language). The value of Bitcoin does not exist because, for the investor, it is completely based on the „faith“ that someone will buy his currency in the future, since it has no intrinsic value.

„What is the current value of the Bitcoin dividends? I can answer that, you don’t have to be an awarded mathematician to answer. It’s Nil. He will never pay you a dividend. The whole value is in the ‚bigger fool‘, Bitcoin can be worth $1 million if you find someone to pay. Bitcoin is 100% faith“.

So for the investor there is not much hope for the currency in the next phases of the market, since such ‚faith‘ that he believes moves the price of the currency is losing strength.

„In the next phase of the market, where faith is at its minimum, what do you think will happen with an action that all reason to exist is faith and nothing but faith in the action?“

And the government’s money?

It’s obvious that Grantham doesn’t appreciate Bitcoin like many other investors. However, his argument can be considered wrong by many.

Bitcoin has its intrinsic value based on its programmed scarcity and its main use remains an alternative to the traditional financial system.

Grantham has become a billionaire investment in a system that, for years, was exclusive and limited to a portion of the population that Bitcoin reaches much more easily.

Not only that, but Bitcoin was born as a way to escape from the trust money, which is controlled by the government, and this is truly based on faith.

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