Updated 18 Mar, 2021

Investor Howard Marks: “Bitcoin Demand is Growing”

Investor Howard Marks

 

Key Takeaways:

  • Howard Marks changes his stance on cryptocurrency and Bitcoin
  • The billionaire investor acknowledges Bitcoin’s value

Legendary Investor Howard Marks Reconsiders his Stance on BTC

One of the biggest names in finance joined the Korea Economic Daily in a video interview to discuss the looming Bitcoin mania. Howard Marks, a legendary investor, an author of highly praised books on markets, and Chairman and co-founder of alternative investment manager Oaktree Capital shared his thoughts on cryptocurrency and Bitcoin on Tuesday.

The billionaire investor, who is worth over $2.1bn and is famous for his anticipated and insightful memos, appears to have reconsidered his “dismissive” stance on bitcoin and the crypto space as he confirmed there is a reason for the growing demand for cryptocurrencies.

“The supply [of Bitcoin] is fixed by the software … so it can’t expand much, unlike the dollar which can be printed in infinite amounts. And the demand is growing because more people are interested in it,” he said. The Oaktree Chairman admitted he was “very dismissive” in 2017, but now that there is a lot more demand from both retail and professional investors, he has shifted his perspective.

In 2017, Mr. Marks criticized bitcoin and digital currencies and called them “nothing but an unfounded fad”. He even went so far as to label them “not real” and “perhaps even a pyramid scheme”.

Mark’s View on Bitcoin as a Store of Value

In a change of heart, Howard Marks, who was among the first to call the US housing bubble in 2008, acknowledged he has realized how much he doesn’t know about the digital asset market. “My initial response was a knee-jerk reaction without information, and that’s not a good way to behave. So, 3-4 years ago I was willing to comment; now I’ve learned how much I don’t know…you shouldn’t talk about things you don’t know about.

He also mentioned that Bitcoin has distinctive characteristics that make it stand out among other asset classes. “The argument is that it can be used 24 hours a day, 7 days a week; its confidentiality; and other factors,” the investor said.

“I was dismissive in 2017 and I can’t claim to be proved right yet…The people who bought it at $5,000 — so far they look right,” Howard Marks commented.