At the 2018 Delivering Alpha conference in New York on July 18, Howard Marks, the co-founder of Oaktree Capital Management, whose net worth tops $1.9 billion, said bitcoin would eventually fizzle out and prove that it never had any substance. According to the billioner, bitcoin is not a worthwhile long-term investment vehicle, but merely a short-term trading opportunity: “[Bitcoin is] not an investment…it’s a trade,” Marks stated in his interview to CNBC. “In the long run, I think it will be shown not to have any substance.”
Marks considers that people buying bitcoin do so because they want to get a quick profit by selling off their holdings to a “greater fool” than themselves:
“This is what we called, when I was a kid, the ‘greater fool theory.’ They think 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.”
Another billioner Bill Gates, a bitcoin skeptic fully agrees bitcoin has no inherent value and ultimately will implode along with the rest of the cryptocurrency market. He said:
“As an asset class, you’re not producing anything, so you should not expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment.”
Despite a big number of cryptocurrency skeptics, today’s new tech billionaires are 100% sure that bitcoin is a wave of the future.
“I’m convinced 100 percent that crypto is the future,” Binance founder Changpeng Zhao told Bloomberg. “I just know it will happen.” Zhao, whose net worth tops $1.3 billion, showed up on cover of Forbes magazine’s first-ever crypto rich list.
Moreover, the Winklevoss twins Tyler and Cameron (estimated net worth: $900 million to $1.1 billion) say bitcoin skeptics who carelessly reject cryptocurrencies have an epic “failure of imagination.”
“I’m not sure we’d even sell [when bitcoin price tops $380,950],” said Tyler Winklevoss. “Bitcoin is more than gold. It’s a programmable store of money.”