In a recent revelation, Howard Marks, Co-founder of Oaktree Capital Management, has ignited a fresh perspective in the ongoing debate between Bitcoin and Gold. Notably, Marks contends that when it comes to intrinsic value, both assets stand on equal footing.
Meanwhile, this departure from the traditional narrative comes as Oaktree, an asset-management firm founded in 1995, manages a staggering $180 billion in assets. Marks, known for his astute observations, suggests a paradigm shift in the investment landscape, urging investors to consider high-yield bond funds amidst what he perceives as a transformed environment.
Oaktree Co-Founder Sees Little Difference Between Bitcoin & Gold
In a recent interview on the Merryn Talks Money podcast, Howard Marks expressed his unconventional stance on the intrinsic value of Bitcoin and Gold, Bloomberg reported. Despite Gold being considered a more established asset, Marks argued that it lacks a solid analytical foundation.
Notably, he stated, “Gold is a little more tried and true, but it also lacks any kind of analytical raison d’etre.” This viewpoint aligns with his broader belief that the investment landscape has undergone a substantial shift, marking the end of an era with 0% interest rates.
In addition, Marks proposes high-yield bond funds as a safer alternative, emphasizing their substantial yields in the current market scenario. Marks’ comments echo his earlier sentiments during the banking crisis, where he acknowledged Bitcoin’s resilience as an “anti-bank play.” During that tumultuous period in 2023, he stated:
“It (Bitcoin) is an anti-bank play, and the weakness of the bank shows up the strength of Bitcoin, and it’s done very, very well this year.”
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The Ongoing Debate With Varied Perspectives
The discussion surrounding the comparative merits of Gold and Bitcoin is not a novel one. Market pundits and analysts have often drawn lines between the two assets, presenting diverse viewpoints.
For instance, before the eagerly anticipated approval of the Spot Bitcoin ETF, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, shared a unique perspective. As reported by CoinGape Media, Mike McGlone suggested that gold might outshine Bitcoin in 2024, attributing this possibility to uncertainties surrounding the potential launch of Bitcoin ETFs, seen as a potential game-changer in the cryptocurrency market.
The dynamic nature of the Bitcoin Vs. Gold debate continues to unfold, with industry experts offering contrasting predictions. Howard Marks’ assertion that both assets lack intrinsic value adds a compelling layer to the ongoing discourse, challenging established norms in the world of investments.
Meanwhile, as of writing, the Gold Futures were trading at $2,030.85, up 0.46% over the last 24 hours. On the other hand, the Bitcoin price was down 3.35% from yesterday and traded at $41,292.64 at the same time.
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