[2018-08-14]Legendary Investor Howard Marks Admits ‘I Don’t Understand What’s...

[tyz]

Legendary Investor Howard Marks Admits ‘I Don’t Understand What’s Behind Bitcoin’

After calling Bitcoin a ‘fad’ and a ‘pyramid scheme’ the man who called the dot com bubble has admitted that he does not understand what is driving the value of Bitcoin, which keeps rising seemingly unhindered.

While many, including traditional investors, come around to Bitcoin and get on board with the digital currency that keeps breaking records in terms of its value, some are still stubbornly skeptical, and a little confused.

http://bitcoinist.com/legendary-investor-howard-marks-admits-i-dont-understand-whats-behind-bitcoin/

[Xavofat]

The problem with new technologies is that when people realise how good they are, they get too excited and put too much of their faith behind it in the short term.  Marks is correct in realising this, and it is probably happening to Bitcoin now.  However what he is incorrect about is the claim that Bitcoin is a fad or pyramid scheme - this is simply uninformed.

The problem is that many people who are bearish are ignorant about the technology, and this makes bulls too confident in their position.
Anyway, the dotcom bubble was terrible, but it's not like it was the end of e-commerce.  Some Internet companies became much bigger than they were during the dotcom bubble, and now it's quite normal to use the Internet for regular purchases.  A similar thing can certainly happen with BTC.

The basic principle that Marks doesn't understand is that gold, silver and especially fiat money have no intrinsic value.  BTC is designed as a payment system which also functions as an asset.