Billionaire investor Howard Marks: Cryptocurrencies ‘aren’t real’


Founder of Oaktree Capital Management, Howard Marks, a is unshakeable about his attitude on cryptocurrencies like Bitcoin, Ether and others: “They’re not real.” Marks restated this three times to clients in his recent Oaktree message.

“I’d guess these things have emerged from the crisscrossing of uncertainties about financial safety and security which includes the worth of national currencies that resulted out of the monetary crisis and the repose felt by Millennials regarding all things virtual,” says Marks. “But they’re not real.”

But he’s still uncertain and remains unconvinced that these may hold any long-term commitment.

“Some people are eager to speculate on digital currency for profit,” he writes. “Others want to put a little money into these to-date-profitable phenomena rather than run the risk of missing out. But they’re not real!”

According to Marks, “It all comes down to positiveness.” Bitcoin and ether speculators could take a rapid booming as soon as our existing bull market takes a nosedive. “They’re likely to keep working as long as optimism is present,” writes Marks. “But their performance in bad times is far from dependable. What will happen to Bitcoin’s price and liquidity in a crisis if people decide they’d rather hold dollars (or gold)?”

Marks is one among those old-school Wall Street players to be doubtful of digital currencies. Morgan Stanley, one of the major banks, have identified Bitcoin’s use as a worth-holding asset, but are undecided to call it a real money.

For people like Marks, Bitcoin has a steep learning angle. It’s not as less complicated as common fiat currency, with notes backed by a central bank and transposed through clearing houses. Instead, Bitcoin avails a blockchain, which can immediately credit and debit ledgers of parties included in a distinctive transaction. “Nobody has been able to make sense to me of these currencies,” he writes.