Billionaire Howard Marks Says Bitcoin Has No ‘Substance’
CNBC held its eighth annual Institutional Investor Delivering Alpha conference in New York on Wednesday, during which Howard Marks, Co-Chairman of Oaktree Capital, became the latest investment billionaire to express his doubts to mainstream media about the value of Bitcoin.
Marks received a tremendous criticism from the cryptocurrency community following comments he made in September 2017 in which he dubbed Bitcoin a “fad“. Following the backlash, Marks stated that he needed to do more research on cryptocurrencies.
Evidently, his position hasn’t changed much.
“It’s not an investment … it’s a trade,” said Marks. “In the long run, I think it will be shown not to have any substance.”
“This is what we called, when I was a kid, ‘the greater fool theory,” explains Marks. “[People are buying Bitcoin] because they think someone will buy it from them at a higher price. Not because they can specify its intrinsic benefits. Not because they can judge the intrinsic value. But only because they think it’s going up.”
CNBC has been regularly releasing articles featuring billionaire investors lambasting Bitcoin. Yesterday, Ken Griffen, founder of the powerful hedge fund firm, Citadel, told CNBC that there is “No need for cryptocurrencies,” adding that “they are a solution in search of a problem.”
Despite the negative opinions coming from mainstream media, Bitcoin has continued to rally from its fall below $6,000 in June. Bitcoin’s price has risen nearly 20 percent in the last 7 days, and is now over 7,000 for the first time in over a month.
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