GMO's Grantham Joins Bitcoin-Bubble Chorus as Swings Subside
(Bloomberg) -- Jeremy Grantham has joined the chorus of crypto-bears warning of a potential bubble in bitcoin, as the price of the digital token appears to stabilize after a wild few weeks.
The chief investment strategist for GMO in Boston described the bitcoin market as a “true, crazy mini-bubble” in a letter to investors this week. Grantham follows the likes of Warren Buffett and even bitcoin-bull Mike Novogratz in warning of a bubble in cryptocurrencies, which have exploded into the mainstream consciousness in the past few months.
“Having no clear fundamental value and largely unregulated markets, coupled with a storyline conducive to delusions of grandeur, makes this more than anything we can find in the history books the very essence of a bubble,” the GMO letter said.
Read more in Bloomberg's round-up of bitcoin bulls and bears.
Bitcoin fell 3.8 percent to $14,478.51 as of 8:10 a.m. New York-time, having stabilized near $15,000 following a plunge in December.
The letter from GMO comes after Bank of America Corp.'s Merrill Lynch eschewed the virtual currency. The brokerage told employees last month not to offer clients Grayscale's Bitcoin Investment Trust, one of the few financial instruments directly holding the digital coin.
--With assistance from Todd White
To contact the reporter on this story: Samuel Potter in London at spotter33@bloomberg.net.
To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Todd White, Dave Liedtka
©2018 Bloomberg L.P.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
