Howard Marks, co-founder of alternative investment manager Oaktree Capital, says he has reconsidered his previous "dismissive" stance on bitcoin.
While he'd previously considered bitcoin to have no intrinsic value, he said that "there are plenty of things that people want and value highly that have no intrinsic value. How about a painting or a diamond or a bar of gold?" he said.
Marks described the positives of of bitcoin as being able to trade 24 hours a day and confidentiality.
Saying his early comments hadn't been proven correct so far, Marks added that, with bitcoin now over $50,000, people who bought at $5,000 "look right."
However, while bitcoin, unlike the U.S. dollar, has a limited supply of 21 million units, Marks argued the market is "circular," meaning people want the cryptocurrency because the price is rising and that demand drives prices up.
Marks also said in a recent Oaktree memo that his son "thankfully owns a meaningful amount" of bitcoin.
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.