Oaktree Capital Founder Howard Marks Changes Stance on Bitcoin
Oaktree Capital founder Howard Marks is the latest famed investor from the financial industry to complete an about turn on Bitcoin.
Marks has admitted on a CNBC interview that he has changed his opinion on Bitcoin after dismissing it in the past. Marks said he’d made knee-jerk reaction before which he says ‘is not a good way to behave.’
The billionaire investor called Bitcoin a pyramid scheme in 2017 when it was trading at around $5,000, and wth the price now above $56,000 the famed investor has missed out on over 1100% gains.
Howard Marks Changes Stance on Bitcoin
Oaktree Capital founder Howard Marks spoke openly about Bitcoin and explained that he was opening his mind to Bitcoin after making his knee-jerk reaction.
Marks has seen how institutional demand for Bitcoin has grown after major companies such as Tesla, MassMutual and some of America’s biggest banks have started gaining exposure to the leading cryptocurrency.
Marks dismissed Bitcoin back in 2017, saying it ‘doesn’t have any intrinsic value.’ And while the Oaktree Capital chairman maintains that belief, he explains other assets and currencies don’t either.
‘While Bitcoin doesn’t have an intrinsic value, the same can be said of the dollar and many, many other things that have value like paintings and diamonds,’ explained Marks who said he was adhered to Bitcoin because of its supply and demand case.
‘People make the case for Bitcoin … on the basis of supply and demand,’ said Marks while explaining Bitcoin’s fixed supply is ‘unlike the dollar, which can be printed in infinite amounts.’
The Oaktree Capital founder believes ‘the demand is growing because more people are interested in it,’ but warned ‘it’s a little circular because people want it because it’s going up in price and it’s going up in price because people want it. That’s circular.’
Anonymous And Unconfiscatable Features – A Big Draw For Bitcoin
Howard Marks has clearly done some research and explained some of the benefits to why the demand for Bitcoin was growing.
‘The argument is that it’s very useful to be able to trade instantaneously, you can trade 24 hours … seven days a week,’ explained Marks who said he was drawn to Bitcoin’s anonymous features.
‘It’s confidential,’ explained Marks. ‘Nobody knows about your holding but you, the government can’t know, etc. Nobody can steal it from you. It’s better than an emerging market currency.’
And Marks, a famed Wall Street investor admitted his initial reaction was too dismissive for someone who doesn’t understand something.
‘Now I’ve learned how much I don’t know,’ explained Marks. ‘So you shouldn’t talk about things you don’t know about… My initial response was a knee-jerk reaction without information and that’s not a good way to behave.’
Howard Marks The Latest Of Many, First Of Many More
‘Bitcoin is a pyramid scheme,’ ‘Bitcoin is a fad,’ ‘Bitcoin is a fraud,’ are just a few opinions shared by some of the financial industry’s biggest names.
They have all been debunked, and the very people that called them out are now calling themselves out. Howard Marks is the latest famed investor from Wall Street to complete an about turn on Bitcoin. He certainly won’t be the last either.
Corporations from MicroStrategy to Tesla, financial institutions from JPMorgan to PayPal, they have all dismissed Bitcoin and now have exposure to it.
The next question is: Which government will be the first to complete their about turn?
Oaktree Capital Founder Howard Marks was speaking on CNBC
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.