Oaktree Capital’s Howard Marks has warmed up to bitcoin. He admitted that he had a knee-jerk reaction to the cryptocurrency and dismissed it too soon. Since then, the price of bitcoin has risen tenfold as demand for the cryptocurrency soars among retail and institutional investors.
Howard Marks Changes Stance on Bitcoin
Howard Marks, co-founder and co-chairman of Oaktree Capital Management, talked about bitcoin during an interview with CNBC last week.
As institutional investors become increasingly interested in bitcoin and major companies have announced their investments in the cryptocurrency, Marks said: “I’m opening my mind on bitcoin. I was ‘knee-jerk’ skeptical.” He clarified:
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. I’ve been more sensitized to the supply-demand case.
The Oaktree Capital founder similarly told The Korea Economic Daily on March 15 that back in 2017, when bitcoin rose in popularity, he was “very dismissive of it because it doesn’t have intrinsic value.” He added that he has been studying and found that “people make the case for bitcoin … on the basis of supply and demand.”
He noted that the supply of bitcoin is fixed, “unlike the dollar, which can be printed in infinite amounts,” adding that “the demand [for bitcoin] is growing because more people are interested in it.” However, he pointed out that “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.”
Exploring “independent reasons why people want it,” Marks named some benefits of bitcoin. “The argument is that it’s very useful to be able to trade instantaneously, you can trade 24 hours … seven days a week.” He compared it to banks, stating that with banks you can’t send a wire any time. In…