TheOaktree Capital co-chairman who called cryptocurrencies “not real” in July appears to be reconsidering his earlier position.
Ina brand-new financier note released September 7, HowardMarks reviewed the subject he checked out previously this summertime, when at the time he dubbedcryptocurrencies “an unfounded fad” that had actually produced a high-risk market bubble.
Marksstill believes the cryptocurrency market remains in bubble area, however he acknowledged in the note that the “particularly spirited response” to his remarks triggered him to reassess his earlier method. After strolling through the attributes that make something a currency– that it’s accepted for exchange and acts as a shop of worth– Marks eventually concurs that bitcoin certifies as one in this regard.
“Bitcoin fans argue that it qualifies as a currency under these criteria: most importantly, it’s something that parties can agree to accept as legal tender and a store of value. That actually seems right.”
Thatstated, he’s not totally persuaded about the cryptocurrency market’s long-lasting potential customers, according to the note. On this point, he highlights the expansion of other cryptocurrencies, questioning aloud “who knows which one will turn out to be the winner?”
Allthe exact same, Marks concluded that while his viewpoint on cryptocurrencies has actually moved, he does not strategy on putting any cash in the market either.
“I think I understand what a digital currency is, how bitcoin works, and some of the arguments for it. But I still don’t feel like putting my money into it, because I consider a speculative bubble,”he composed, including:
“I’m willing to be proved wrong.”
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