uploads///Bitcoin Showed a Strong Performance in Late

Howard Marks on Bitcoin: ‘Not an Investment…It’s a Trade’

By

Jul. 30 2018, Updated 10:31 a.m. ET

Howard Marks on Bitcoin

Billionaire investor and the co-founder of Oaktree Capital Management Howard Marks shared his views on Bitcoin at the Delivering Alpha Conference on July 23.

Marks believes Bitcoin won’t be able to provide long-term investment goals. He feels it doesn’t have any intrinsic value or any real fundamentals. He said, “It’s not an investment…it’s a trade. In the long run, I think it will be shown not to have any substance.” He added that investors are buying bitcoin with the only hope that “someone will buy it from them at a higher price. Not because they can specify its intrinsic benefits. Not because they can judge the intrinsic value. But only because they think it’s going up.”

Bitcoin walked a bullish path in 2017. It rose 1,300% and hit a record high of $17,549 on December 11. However, it has been struggling in 2018. On a year-to-date basis, it fell nearly 43% as of July 26.

Article continues below advertisement

The Bitcoin Investment Fund (GBTC) has fallen 47% on a year-to-date basis as of July 26. In contrast, the S&P 500 Index (SPY) gained 6.1%. Although the equity market showed some nervousness in the first half of 2018, it recovered this month. The weakness was mainly due to rising concerns about a global trade war and the Fed’s faster rate hike process.

For more analysis, check out 

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.