09 Aug '17, 1pm
Yes, Bitcoin Has No Intrinsic Value. Neither Does a $1 Bill
penned in late July by Howard Marks, who runs Oaktree Capital, which manages north of $90 billion. Marks wrote to his investors that “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.” Not surprisingly, he cautioned clients about investing in the currency. His perspective is widely shared, amid concerns about the currency’s recent price spike and extreme volatility. Past security breaches on bitcoin exchanges, as well as the limited options for using bitcoin in transactions, only add to the skepticism. The “bitcoin fork” will do little to allay such anxieties about an unfamiliar form of currency that relies on software and a network of computers linked over the internet to record and process transactions.