Howard Marks 'Willing to Be Proved Wrong' on Bitcoin

Investor Howard Marks still thinks bitcoin is a bubble, but in a new note, he suggested his thought process on the technology is evolving.

Sep 8, 2017 at 5:20 p.m. UTC
Updated Sep 13, 2021 at 6:54 a.m. UTC

The Oaktree Capital co-chairman who called cryptocurrencies "not real" in July appears to be rethinking his earlier position.

In a new investor note published September 7, Howard Marks revisited the topic he explored earlier this summer, when at the time he dubbed cryptocurrencies "an unfounded fad" that had created a high-risk market bubble.

Marks still thinks the cryptocurrency market is in bubble territory, but he acknowledged in the note that the "particularly spirited response" to his remarks caused him to rethink his earlier approach. After walking through the characteristics that make something a currency – that it's accepted for exchange and serves as a store of value – Marks ultimately agrees that bitcoin qualifies as one in this regard.

He wrote:

"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."

That said, he's not completely convinced about the cryptocurrency market's long-term prospects, according to the note. On this point, he highlights the proliferation of other cryptocurrencies, wondering aloud "who knows which one will turn out to be the winner?"

All the same, Marks concluded that while his perspective on cryptocurrencies has shifted, he doesn't plan on putting any money 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 wrote, adding:

"I'm willing to be proved wrong."

Image via YouTube

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
The Curious Case of Coinbase's India Communications Strategy

Reverberations remain from the company's ill-fated Indian launch.

Reverberations remain from the company's ill-fated Indian launch.

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Asia: Crypto Carbon Trading Is Racing to Clean Up Its Act; Cryptos Drop Even as Stocks Rise

Carbon credit protocols have had a difficult time in recent months but have been working to improve the way they operate; bitcoin outperformed other major cryptocurrencies in Thursday trading.

Carbon credit protocols have had a difficult time in recent months but have been working to improve the way they operate; bitcoin outperformed other major cryptocurrencies in Thursday trading.

CoinDesk - Unknown
3
CoinDesk - Unknown
Terra Devs Need a Home. Other Blockchains Are Courting Them

Armed with multimillion-dollar ecosystem funds, chains like Polygon and Kadena are trying to woo coders whose work is endangered by Terra’s meltdown.

Armed with multimillion-dollar ecosystem funds, chains like Polygon and Kadena are trying to woo coders whose work is endangered by Terra’s meltdown.

CoinDesk - Unknown
4
CoinDesk - Unknown
Circle Recommends Against a Digital Dollar, and Ethereum Beacon Chain Suffers Longest ‘Reorg’ in Years

The most valuable crypto stories for Thursday, May 26, 2022.

The most valuable crypto stories for Thursday, May 26, 2022.

CoinDesk - Unknown