Billionaire investor Howard Marks has changed his ‘dinosaur’ view of Bitcoin
Billionaire investor and market pundit Howard Marks- made news in July when he called- Bitcoin a -lsquo;fad-rsquo; in one of his famous investor memos, joining with other prominent investing- experts. Marks famously predicted the dotcom bubble in 1999, and now manages approximately $99 bln in assets.
However, in his most recent Oaktree Capital memo, Marks retracted his position after being educated by some of his Bitcoin-loving friends regarding the- cryptocurrency. After detailing a substantial part of his recent education, Marks concludes that Bitcoin is no different than US dollars, adding:
-ldquo;There-rsquo;s absolutely no reason why Bitcoin -ndash; or anything else -ndash; can-rsquo;t serve as a currency if enough people accept it as such. - While I-rsquo;d point out that no private currency has gained widespread use in a long, long time, there-rsquo;s nothing to say it can-rsquo;t happen.-rdquo;
The conclusion sums up Marks-rsquo; original concerns regarding a lack of fundamental intrinsic value, and rebuffs them.
Still not buying it
Marks hasn-rsquo;t come around fully, however, and continues to be concerned about what he sees as widespread speculation. Even though he accepts that Bitcoin can function as a currency, he believes that Bitcoin-rsquo;s outsized returns over the past three years could be the sign of a speculative- bubble. The Bitcoin portion of the memo concluded:-
-ldquo;Thanks to the people who took the time to educate me, I-rsquo;m a little less of a dinosaur regarding Bitcoin than I was when I wrote my last memo. - I think I understand what a digital currency is, how Bitcoin works, and some of the arguments for it. - But I still don-rsquo;t feel like putting my money into it, because I consider it a speculative bubble. - I-rsquo;m willing to be proved wrong.-rdquo;