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- Howard Marks recently did an interview with CNBC where he addressed the trending topic of Bitcoin
- The Oaktree Capital founder stated that he is widening his mind about bitcoin
- Howard explored various autonomous reasons behind people wanting the crypto asset
The co-chairman of Oaktree Capital Management, who is also the co-founder, Howard Marks, recently did an interview with CNBC where he addressed the topic of Bitcoin and his respective opinion on the changing times in the crypto space.
Oaktree Capital Founder’s transformed opinion on Bitcoin
As institutional traders become growingly absorbed in the bitcoin space and significant institutions are announcing their investment plans in cryptocurrency, Howard stated that he is widening his mind about bitcoin. He further added that while bitcoin doesn’t hold an inherent value, a similar perception can be made for dollars and various other things that constitute value, such as paintings and diamonds. He also expressed his hypersensitivity to the supply-demand case.
On March 15, the Oaktree Capital founder gave another interview to The Korea Economic Daily. He stated that back in 2017, bitcoin’s popularity rose. He had a very dismissive attitude because it lacked any intrinsic value. However, now when he studied a little, he realized that people establish the case for bitcoin based on supply and demand.
The circular trap of Bitcoin’s price surge
He explained that the supply of bitcoin remains fixed. It has a limit to it. This makes it different from the dollar, which the government can print in infinite amounts. He further added that the demand for BTC is consistently surging because more people are gaining interest in it. However, he emphasized that the situation here falls a little circular because people want to get hold of Bitcoin because of its surging price, and meanwhile, the price is surging because people desire it. That’s the circular situation, he explained.
Howard explored various autonomous reasons behind people wanting the crypto asset. Within the process, he outlined certain benefits of bitcoin. He stated that the principal idea is that it’s beneficial because one can trade instantaneously, or say 24 hours or seven days a week. He compared this setup to banks, highlighting that with banks, one does not have this anytime anywhere facility.
He added that it remains confidential, as only you know about your holding, and nobody can steal it. He emphasized how it comes across finer than a developing market currency. He concluded that the demand grows for all these reasons, while the supply doesn’t. Hence, according to economics’s basic rules, the price goes up.
He then wondered if all these reasons mentioned above are enough to account for bitcoin’s value. He explained that the worth of BTC was around $5,000 when he rejected it in 2017, and now it stands over $50,000. Thus, according to him, the people who purchased it at $5,000 so far appear fair in the more significant deal.
