Howard Marks of Oaktree Capital is already passionate about Bitcoin. He admitted that he had a subconscious reaction to this cryptocurrency, so he fired it prematurely. Since then, as the demand for cryptocurrencies from retail and institutional investors has soared, the price of Bitcoin has risen tenfold.

Howard Mark changes Bitcoin’s position

Howard Marks, co-founder and co-chairman of Oaktree Capital Management talked about Bitcoin in an interview with CNBC last week.

With the increasing interest of institutional investors in Bitcoin, major companies have announced their investment in cryptocurrency. Marks said: “I am open to Bitcoin. I doubt it.” He clarified:

Although Bitcoin has no intrinsic value, it can be said to be the same for the U.S. dollar and many other valuable things, such as paintings and diamonds. I am more sensitive to supply and demand cases.

The founder of Oaktree Capital told the Korea Economic Daily on March 15 that, similarly, in 2017, when Bitcoin became more and more popular, he was “very dismissive because it has no intrinsic value.” He added, He has been researching and found that “people…justify Bitcoin based on supply and demand.”

He pointed out that the supply of Bitcoin is fixed, “unlike the U.S. dollar, the U.S. dollar can be printed in unlimited quantities,” he added, “demand [for bitcoin] The reason for growth is that more and more people are interested in it. “However, he pointed out, “This is a bit circular, because people want it to be because of price increases, and prices are because people want prices to increase.” That is circular. “

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Marks explored the “independent reasons people want it” and Marks mentioned some of the benefits of Bitcoin. “The argument is that being able to conduct transactions in real time is very useful. You can conduct transactions 24 hours a day, 7 days a week.” He compared it with the bank and pointed out that you cannot send wire transfers at any time in the bank. In addition, he said: “This is confidential. No one knows your holdings, but you don’t know the government, etc. No one can steal it from you. It is better than emerging market currencies.” He concluded:

Therefore, all these arguments are about why people want it.Demand grows but supply does not grow, then economics tells us [that] Price increased.

Then he pondered whether these reasons were sufficient to justify the price of Bitcoin. He pointed out that when he disbanded BTC in 2017, its price was about $5,000, and it has now exceeded $50,000. He said: “So people bought it for $5,000, and so far, they look pretty good.”

Oaktree Capital founder Howard Marks (Howard Marks) changed his view of Bitcoin because demand soared and the price increased 10 times
The chart shows the price of Bitcoin from 2017 to the present. Source: markets.Bitcoin.com

According to markets.Bitcoin.com, the current price of Bitcoin is $56,106. This is 1,022% higher than the price when Marks was withdrawn.

At the same time, more and more institutions are beginning to use Bitcoin. For example, Elon Musk’s Tesla invested $1.5 billion in this cryptocurrency and recently started accepting BTC as a payment method for its cars. After seeing the huge demand for bitcoin from institutions, Goldman Sachs reactivated its BTC trading department. Morgan Stanley recently stated that it will provide wealthy clients with access to Bitcoin funds. There are now three Bitcoin ETF transactions in Canada, and major companies including Fidelity and JPMorgan have applied to the U.S. Securities and Exchange Commission (SEC) to launch Bitcoin-based products.

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Commenting on his initial, dismissive reaction to Bitcoin, Marks said: “Now I know how much I don’t know, so you shouldn’t talk about things you don’t know.”

My initial reaction was a subconscious reaction without information, which is not a good way to express it.

What do you think of Howard Marks’ new Bitcoin position? Let us know in the comments section below.

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Bitcoin, Bitcoin Economics, Bitcoin Price, Fund Manager, Howard Mark, Howard Mark Bitcoin, Howard Mark Cryptocurrency, Howard Mark Cryptocurrency, Institutional Investor, Oaktree Capital Bitcoin, Oaktree Capital Crypto

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