Howard Marks, co-founder of other funding supervisor Oaktree Capital, says he has reconsidered his earlier “dismissive” stance on bitcoin.
The investor, who’s value $2.1 billion in keeping with Forbes, beforehand said in a 2017 memo that cryptocurrency was “an unfounded fad.” The remark was “a knee-jerk response with out info,” Marks conceded in a video interview with the Korea Financial Day by day on Monday.
Whereas he’d beforehand thought-about bitcoin to don’t have any intrinsic worth, he mentioned that “there are many issues that folks need and worth extremely that don’t have any intrinsic worth. How a couple of portray or a diamond or a bar of gold?” he mentioned.
Marks described the positives of of bitcoin as having the ability to commerce 24 hours a day and confidentiality.
Saying his early feedback hadn’t been confirmed appropriate up to now, Marks added that, with bitcoin now over $50,000, individuals who purchased at $5,000 “look proper.”
Nonetheless, whereas bitcoin, not like the U.S. greenback, has a restricted provide of 21 million items, Marks argued the market is “round,” which means folks need the cryptocurrency as a result of the value is rising and that demand drives costs up.
Marks additionally said in a latest Oaktree memo that his son “fortunately owns a significant quantity” of bitcoin.