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Howard Marks, a billionaire investor, trusts bitcoin has a lot offer.
Howard Marks feels Bitcoin has a strong future
In recent weeks, Marks said that bitcoin is becoming a big power play for those who lose faith in the US banking system, which has been in trouble of late. At press time, some three banks in the US have completely collapsed, largely due to the mounting debt the Fed has taken on.
In a recent interview, Marks commented on bitcoin:
There are people who believe that when you have a banking crisis, like we did with Silicon Valley Bank and some of the others, the weakness of the banks shows the strength of bitcoin. In many ways, it’s an anti-banker play. It seems that there are good uses for some coins, and Bitcoin seems to be the leader so far.
He said that up to this point, interest rates have been relatively low and are largely responsible for all the money American investors have made over the past four and a half decades. He also said that while the current rate hikes are unlikely to last much longer, he does believe that the days of super-low rates are dead and gone. He commented:
Falling interest rates were responsible for most of all the money made in the last 45 years… Rates are high today to fight inflation. I don’t think they are going to stay that high, but they are coming down in a major way, and they are very low.
He also stated that the current situation presents opportunities for both investors and the Fed to show a certain humility, which has been missing from the financial landscape in the US for years. He said:
Humility is something very important, especially in the market, which humiliates us all. Anyone who does not allow humility, in a field where there is chance and uncertainty, and qualitative and subjective things are important, is in danger of falling.
In the long run, he doesn’t think the Fed has done a good job of ensuring that the cogs in the monetary machine keep running smoothly. He stated:
People used to talk about the factory of the future, which would have a man and a dog, and the dog’s job was to keep the man from touching the equipment. The man’s job was to feed the dog. I wish the Fed would keep its hands off the machinery most of the time.
The AI will present problems
In closing, he said that advances in AI could cause problems for many workers in the future, saying:
AI, like passive investing and machine learning, perhaps to an even greater extent, will weed out everyone who doesn’t add value.
