Bitcoin spurs many interesting debates and conflicting opinions. Howard Marks, a renowned investor, sees no long-term merit in the world’s leading cryptocurrency. In fact, he is convinced Bitcoin is not an investment at all, but rather a trade.
Howard Marks Isn’t a Bitcoin Fan
A fair few financial experts have a negative view on Bitcoin these days. A non-backed form of money has no value in their mind. Howard Marks confirmed his view by stating at the Delivering Alpha Conference how Bitcoin is not an investment. It has, in his opinion, little to no future in the long-term. In fact, it will become apparent Bitcoin has no substance, according to Marks.
Explaining the Bitcoin buying activity is also simple. Marks claims people buy BTC in the hopes of finding others who will buy it at a higher price. This is eerily similar to a pyramid scheme waiting to collapse. Even so, Marks never labels Bitcoin as such. Instead, he merely states the cryptocurrency has no intrinsic value. For all intents and purposes, Bitcoin is a speculative vehicle first and foremost.
The vision by Howard Marks doesn’t bode well for the future of BTC. Such comments are not new where this cryptocurrency is concerned. It has attracted a lot of naysayers for nine years now. Most of those people have been proven wrong in the end. Whether or not Howard Marks will fall into the same category remains to be determined.
Market Doubts Persist
The year 2018 hasn’t been positive for BTC or other cryptocurrencies. Volatility has made its mark on the industry once again. All prices have been pushed down by nearly 60% or more in the past six months. This further confirms the lack of Bitcoin’s “actual value,” according to Howard Marks.
Bitcoin can offer a few benefits over traditional cash. It is borderless and puts owners in full control of their finances. With no middlemen or governments to take control, it can become the “world currency” people have been looking for. That will only happen with the right regulatory framework in place. So far, that framework does not exist just yet.
The comments by Howard Marks won’t dissuade people from buying Bitcoin. In fact, it may have an adverse effect altogether. The past few days have shown an increasing demand for Bitcoin once again. The market is not out of the woods yet. Bearish pressure still looms overhead and may affect the short-term price. The second half of 2018 may prove to be crucial for all cryptocurrencies.
Do you think Howard Marks is wrong or does his view have some merit? Let us know in the comments below.
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