Billionaire Investor Marks, Who Called the Dotcom Bubble; says Bitcoin is a 'Pyramid Scheme'

I found this latest Review about Bitcoin by Howard Marks, and thought to share it with you.

• Howard Marks warns his investors towards investing in digital currencies.
• His agency Oaktree Capital has $99 billion of property underneath administration as of June 2017, in accordance with its web-site.

Howard Marks, probably the most respected value traders on the market, starkly warned his investors to stay away from high flying cryptocurrencies.

He says "In my opinion, digital currencies are nothing however an unfounded fad (or maybe even a pyramid scheme), based mostly on a willingness to ascribe worth to one thing that has little or none beyond what investors can pay for it," Marks wrote within the investor letter Wednesday. 

Ethereum cryptocurrency is up greater than 2,300 % in last12 months up to now by Wednesday, whereas bitcoin is up almost 160 % in last 12 months, based on information from trade web-site CoinDesk.

The co-chairman of Oaktree Capital is known for his prescient funding memos, which predicted the monetary disaster and the dotcom bubble implosion.

The manager then went on to match cryptocurrencies to the Tulip mania of 1637, the South Sea bubble of 1720 and the web bubble of 1999.

"Critical investing consists of buying issues as a result of the value is attractive relative to intrinsic worth," he wrote. "Speculation, alternatively, happens when investors purchase something with no consideration of its underlying price or the appropriateness of its value."

Oaktree Capital has $99 billion of belongings underneath administration as of June 2017, in response to its website.

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