- Billionaire Howard Marks warns investors against digital currencies
- Bitcoin has been compared to the Internet in 1995
- Litecoin has already approached a crucial support
Billionaire investor Howard Marks, the founder of asset management company Oaktree Capital, firmly warned his clients against investing in high-flying cryptocurrencies, suggesting they are not real. He said that virtual currencies are a pyramid scheme and they have little or none value beyond what people will pay for it. Marks compares cryptocurrencies to the Tulip mania of 1637, the South Sea bubble of 1720 and the internet bubble of 1999. He predicts that Bitcoin along with other cryptocurrencies may take a big hit when the current bull market takes a nosedive.
According to Nick Giamburno, a senior editor at the International Man, the current situation on Bitcoin could resemble that seen in 1995 in case of the Internet. However, in order to become even more popular the Internet needed a trigger which was the IPO of Netspace with its web browser to the world, Netspace Navigator. It’s worth underscoring that in 1995, only 0.3% of the world’s population used the internet. In turn, by the end of 1996, the number of Internet users more than doubled.
In case of Bitcoin it could be the same, he said. Today, there’s an estimated 15 million–35 million bitcoin users. We’ll split it in the middle and call it 25 million. That’s 0.3% of the population… similar to the number of internet users before its Netscape moment. Like the internet in 1995, bitcoin continues to gain popularity. He stressed that one of the most important event was the legalization of BTC in Japan. Since then, over 260 000 stores in Japan have rolled out Bitcoin as a payment method while the country is setting up a Bitcoin ’testing hub’ for fintech companies. Both have led to increased usage of the digital currency there.