A well-known investor is pointing at cryptocurrencies by a estimating them in a recent note as “not real”.
Howards Marks is the co-chairman of Oaktree Capital, according to its website reports $99 billion in assets under management in last month. His comments are midst increasing chatter Wall Street analytics including those from Goldman Sachs and Bank of America.
Cryptocurrencies “not real”
According to CNBC gained disrepute for his discerning calls about both the dot-com bubble and the financial panic in the late 2000s. Earlier in present week, it took a completely negative track in a new momo. “An unfounded fad”, branded cryptocurrencies he comparatively said to those previous episodes. And also on other economic situations like South Sea from the 1700s.
He wrote: “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 non beyond what people will pay for it. But this isn’t the first time. The same description can be applied to the Tulip mania that peaked in 1637, the South Sea Bubble (1720) and the Internet Bubble (1999-2000)”.
The fact that the Bitcoin’s used for payments enables as money. Mark raised a doubt about the market’s projections must overcome certainty among investors start to dimish.
He said, “What will happen to Bitcoin’s price and liquidity in a crisis if people decide they’d rather hold dollars (or gold)?”.
Later, Mark set up the recent development around cryptocurrencies in the wider context of the international market. Additionally, low yields on bonds and “some of the highest equity appraisal in history”.
He adds saying that “digital currencies are sure to end up worthless” or that on the high stock price till date. The today’s market in his view is in a hazardous state.