Is BITCOIN a scam? Howard Marks seems to think so. Agree?
The long respected Wall Street boss has recently warned clients against investing in the currency which has gone up exponentially this year.
The co-chairman of Oaktree Capital says Bitcoin currently has little value and the priced has been pushed up purely by speculators.
Mr Marks has been right before and previously predicted both the financial crisis and that the dotcom bubble would burst, according to CNBC. He has told his clients: "In my view, digital currencies are nothing but an unfounded fad (or perhaps even a pyramid scheme), based on a willingness to ascribe value to something that has little or none beyond what people will pay for it." The investor compared cryptocurrencies to the Tulip mania of 1637, the South Sea bubble of 1720 and the internet bubble of 1999.
Agree or Disagree?
Cryptocurrencies have value because of their utility. They are the only assets that can be held without counterparty risk.
I came across this a few days ago and I couldn't disagree with the guy, after all these currencies are purely driven by supply and demand, and if we as a community drop them, they will have no value. We gave them value that is a fact, but we will continue to do so and hence this is unlike the dotcom bubble.
The problem with Marks analogy is when applied to the U.S. Dollar, you obtain the same result since there is absolutely nothing backing the U.S. Dollar. From my point of view, crypto's have the same value as any Fiat currency (whatever the market is willing to value them at). And to call a blockchain Crypto-currency a pyramid scheme tells me he need a good dictionary to get a proper definition of pyramid scheme!
Just my 2 cents
upvoted
amazing post