Legendary investor Howard Marks appears to release Bitcoin’s doubts. He states that the increasing demand for crypto makes the digital asset better than an emerging market currency. When the world’s leading crypto first gained popularity and recognition in 2017, Marks promptly dismissed the digital asset, asserting that it had no intrinsic value. In a 2017 memo, Marks advocated that cryptocurrencies were “an unfounded fad.” Nevertheless, in a video interview with the Korea Economic Daily, the veteran investor revised his former “dismissive” attitude on Bitcoin.
The remark was “a knee-jerk reaction without information”. Marks admitted in a video interview with the Korea Economic Daily on Monday. He further advocated that people demand and value a variety of things that have no intrinsic value. Moreover, he referenced diamonds, paintings, and bars of gold as models of commodities that had no intrinsic value. He explained the assertive aspects of Bitcoin. Moreover, it includes the ability to trade the crypto 24 hours a day, confidentially. This makes Bitcoin a valuable form of real-time transaction. In contrast, banks cannot process wire transfers if they are closed.
Howard Marks thanks his son for holding Bitcoin
Furthermore, in the interview, Marks also added that his past opinions had not proven right. With Bitcoin now trading at $50,000, he continued that people who acquired $5,000 are profiting. In a current memo, the Oaktree Capital Management co-founder acknowledged his son Andrew for holding a notable amount of Bitcoin for the family. He stated that such investment makes up what his son regards as a crucial point on investor mentality.
Nevertheless, Bitcoin, unlike the U.S. dollar, has a confined supply of 21 million units. Marks explained that the market is “circular,” indicating people desire the cryptocurrency as the price increases that demand drives prices up. Moreover, Bitcoin has come a long way and has evolved to become a globally trusted medium of exchange and a staple in every alternative asset manager’s portfolio. Bitcoin was trading approximately at $55,504 on Tuesday, around 9% lower from its record high above $61,000 over the weekend.
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