Howard Marks: cryptocurrencies are in the zone of bubbles

Co-chairman Oaktree Capital, who called the Crypto-currency “not real” in July, seems to have revised its previous position.

In a new investor note published on September 7 , Howard Mark revised the topic he had explored earlier this summer, when he called the cryptocurrency “an unreasonable hobby” that created a bubble in the high-risk market.

Howard Marx: "cryptocurrencies are in the zone of bubble"

Mark still believes that the crypto-currency market is in the bubble zone, but he admitted in a note that “a particularly energetic answer” to his notes made him reconsider his view. Having examined the characteristics of crypto-currencies that “make them currencies and allow them to serve as a repository of value,” Marx ultimately agrees that bitcoin is so.

He wrote:

“Supporters of bitcoin claim that according to these criteria, it is qualified as a currency: the most important thing is that the parties agree to accept it as a legal remedy and store the value in it. This is really so. “

According to a new note, he is not entirely sure about the long-term prospects of the crypto-currency market. On this occasion Mark points out that various digital currencies appear, wondering aloud: “Who knows which one will be the winner?”

And Mark came to the conclusion that, even despite his “new” view of the cryptocurrencies, he would not invest money in this market.

“I think that I understand what the digital currency is, how bitcoin works, and some arguments in favor of it. But I still do not want to invest my money in it, because I consider it a speculative bubble, “he wrote, adding:

“I would like to be proved to me that I’m wrong.”

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