Cryptocurrency Convergence: Oaktree Co-Founder Argues Parity Between Bitcoin & Gold’s Intrinsic Value

In a recent disclosure, Howard Marks, one of the Co-founders at Oaktree Capital Management, has introduced a novel outlook to the ongoing discourse surrounding Bitcoin and Gold. Interestingly, Marks argues that both assets share parity regarding intrinsic value.

This departure from the conventional narrative coincides with Oaktree Capital Management, established in 1995 and overseeing an impressive $180 billion in assets. Known for his keen insights, Marks implies a fundamental change in the investment terrain, encouraging investors to explore high-yield bond funds in what he perceives as an altered financial environment.

However, In a recent appearance on the Merryn Talks Money podcast, Howard Marks shared his unconventional perspective regarding the intrinsic value of Bitcoin and Gold, as reported by Bloomberg. Despite Gold’s status as a more traditional asset, Marks argued it lacks a solid analytical foundation.

Specifically, he remarked, “Gold is somewhat more established, but it also lacks a clear analytical raison d’etre.” This viewpoint reflects his overarching belief that the investment landscape has experienced a significant transformation, signaling the conclusion of an era with 0% interest rates.

Furthermore, Marks suggests high-yield bond funds as a more secure alternative, underscoring their substantial yields amid the current market conditions. His remarks mirror his earlier observations during the banking crisis, where he recognized Bitcoin’s resilience as an “anti-bank play.” In the tumultuous period of 2023, he stated:

“Bitcoin serves as an anti-bank play, and the vulnerability of traditional banks underscores the strength exhibited by Bitcoin, performing exceptionally well this year.”

Unconventional Predictions: Could Gold Outshine Bitcoin In 2024?

Moreover, the ongoing conversation about the relative advantages of Gold and Bitcoin is familiar. Experts and market analysts frequently delineate distinctions between these two assets, offering a range of perspectives.

In a recent example, before the much-anticipated approval of the Spot Bitcoin ETF, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, presented an unconventional viewpoint. McGlone proposed the idea that Gold could surpass Bitcoin in 2024. He attributed this potential outcome to uncertainties surrounding the anticipated launch of Bitcoin ETFs, which are perceived as a potential game-changer in the cryptocurrency market.

The ongoing discourse surrounding the comparison between Bitcoin and Gold remains in flux, marked by diverse perspectives from industry experts. Howard Marks’ contention, asserting the absence of intrinsic value in both assets, injects a thought-provoking element into the conversation, challenging conventional investment norms.

At the time of this composition, Gold Futures were actively trading at $2,030.85, reflecting a 0.46% increase in the past 24 hours. Conversely, Bitcoin experienced a 3.35% decline from the previous day’s value, settling at $41,292.64 concurrently.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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