“My first reaction was a jerky reaction with no information, and that’s not a good way to act. I was ready to comment three to four years ago. Now I’ve learned how much I don’t know … you shouldn’t talk about things you don’t know about. ‘

– Howard Marks, Oaktree Capital

This is Howard Marks, who told the Korea Economic Daily in a video interview published Tuesday that he wished he hadn’t dumped Bitcoin so quickly in 2017 when he called cryptocurrencies an “unfounded fad.”

So what did Marks learn? The investor said he initially fired Bitcoin because of its lack of intrinsic value. “But there are many things that people want and value that have no intrinsic value,” he noted.

But Marks, co-founder and co-chair of alternative asset manager Oaktree Capital Management, wasn’t entirely convinced that Bitcoin advocates had sealed the case for digital wealth as well.

One of the cases for Bitcoin is that prices should go up as supply is limited by a cap on the number of coins ultimately produced and demand increases as more people become interested. However, this reasoning seems to be somewhat “circular”. Said Marks.

Are There Independent Reasons To Hold Bitcoin? The argument is that it can be used 24 hours a day, 7 days a week; its confidentiality; and other factors, he said.

“There are all these arguments why people want it… but is that a sufficient reason? That’s the question, ”he said.

Marks admitted that Bitcoin BTCUSD, + 0.14%, was trading around $ 5,000 when he first turned down digital currency in 2017. It is now changing hands north of $ 55,000 after hitting an all-time high north of $ 60,000 over the weekend.

“I was dismissive in 2017 and still can’t say I’m right … The people who bought it for $ 5,000 – they look right so far,” said Marks.