The co-founder of Oaktree Capital, Howard Marks, with a fortune of $ 2.1 billion, who previously spoke about bitcoin with disdain, changed the attitude to the cryptocurrency for the better.
In 2017, Marx called cryptocurrencies ” unfounded fads.” The investor said that there are many things in the world that have no intrinsic value, but people want to possess them. According to Marx, bitcoin is just one of these things. According to him, it will be much better if people shift the focus from bitcoin to art objects, gold or jewelry that have real value. Now the billionaire has admitted that those words were an “impulsive reaction” to innovations that Marx did not yet have a clear idea of. He added that his statements about bitcoin have not been confirmed.
The head of Oaktree Capital realized that bitcoin really has great potential and even described the advantages of the first cryptocurrency. The most important advantage of bitcoin, Marx called the ability to trade it 24 hours a day with confidentiality. In addition, bitcoin has a limited supply of 21 million coins, which increases the demand for them and contributes to the price increase. The same cannot be said about the US dollar and other fiat currencies, which are printed in huge quantities by central banks, Marx noted. He claims that the crypto asset market is “looped”: people are interested in bitcoin because its rate is rising. Accordingly, the increase in demand for BTC further contributes to its growth.
“People who once bought bitcoin for $5,000 did the right thing, because it is now trading above $50,000,” Marks said.
At the beginning of the year, Marx said that his family already owns a certain amount of bitcoins, since digital assets should not be neglected when forming an investment portfolio. Even the well-known cryptocurrency skeptic and supporter of investment in gold, Peter Schiff, recognized the profitability of investing in bitcoin. However, he still holds the opinion that bitcoin will never become a full-fledged replacement for ordinary money.