Howard Mark, a billionaire investor recently cast aspersion on Bitcoin, that it is “Not an Investment,” and will be “Shown Not to Have Any Substance.”
The American investor who is also the co-founder of Oaktree Capital Management, stated this at the eight annual CNBC and Institutional Investor Delivering Alpha conference in New York.
“Not an Investment” and “Shown Not to Have Any Substance”
That’s not the first time he is casting aspersion on virtual currencies in general. Howard Marks recently said that “Some people are eager to speculate on digital currency for profit. 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!”
The recent slam came to be at the eighth annual CNBC and Institutional Investor Delivering Alpha conference in New York. He stated at the conference that: “It’s not an investment … it’s a trade. In the long run, I think it will be shown not to have any substance.”
In the billionaire’s opinion, those who are investing in the cryptocurrency are hoping “someone will buy it from them at a higher price.” in his view, he further states that it is “greater fools theory.” That buying it with the hope of an increase in value and hoping to sell it to another “fool” at a higher value, disqualifies it from being an investment.
He further noted in his words that, people are buying cryptocurrencies “because they think it’s going up,” and not because of the value.
His opinion ranks along with the opinion of Warren Buffett, CEO of Berkshire Hathaway and a Billionaire investor also, that, buying Bitcoin is not investing. Buffett and Charlie Munger had earlier stated this year that that Bitcoin is like “turds” and “dementia,” and further equate it to “rat poison.”
In a recent joint interview with CNBC, JPMorgan’s Jamie Dimon and Buffett informed investors to “just beware” of Bitcoin.
These pessimistic views and aspersion from some billionaires as recently shown still do not reduce the high hope of fans and investors of cryptocurrency. Recently, as reported earlier, a trader bets the projection of Bitcoin to be greater than the value of Berkshire Hathaway’s stock by 2023. Despite this, the bullish trend taken by Bitcoin this week has sprung up hope in a lot of investors.
