Billionaire who predicted dot-com crash says Bitcoin will 'gradually disappear over decades'

Jeremy Grantham, the billionaire investor who predicted both the dot-com bubble collapse and the global financial crisis, has called Bitcoin a "useless and speculative asset" and forecast its eventual demise.

According to U.S. CNBC, Grantham appeared on the network's "Squawk Box" on Friday and said Bitcoin would "gradually disappear over the coming years and decades."

"It's an asset that can lose half its value for no particular reason even when economic conditions are fine," he said. "People don't use Bitcoin to buy dinner or pay at a supermarket — it's merely used by fraudsters for money laundering."

Grantham is co-founder of Boston-based asset management firm GMO. He built his reputation in financial markets by accurately forecasting the dot-com bubble collapse in 2000 and the global financial crisis in 2008.

His remarks came as cryptocurrency prices continued to slide. According to Business Insider, Bitcoin was trading below $59,200 (about 90 million won), down 53 percent from its October last year peak of $126,000. Ethereum has also fallen 48 percent this year.