Howard Marks, the co-founder and co-chairman of Oaktree Capital Management said that Bitcoin is not an investment, and called it a trade. At the same time, he said that investors are speculating on its price without judging its real and intrinsic value.

During an annual conference known as Delivering Alpha for institutional investors, he gave negative comments on the famous virtual currency. Indeed, he said that Bitcoin does not fulfill the definition of an investment. At the same time, he explained that long-term investors are just speculating on the price of Bitcoin.

Apparently, investors are not judging the functionalities or its intrinsic value, but instead they believe that the cryptocurrency will grow and increase its price.

At the same time, Mr. Marks made reference to the ‘Greater Fool Theory,’ an argument that defines the value of an asset by the expectations of the market participants. ‘In the long run, I think it will be shown not to have any substance,” he commented.

Furthermore, he confessed that he does not know what is behind Bitcoin, but this is something that has not stop him from commenting negatively on the famous virtual currency. The comments have been made just days after MasterCard won a patent that allows it to have crypto and bitcoin payments through debit and credit cards.

In the past, Marks commented about cryptocurrencies:

“In my view, digital currencies are nothing but an unfounded fad (or perhaps even a pyramid scheme) based on a willingness to ascribe value to something that has little or none beyond what people will pay for it.”

The comments made by Marks are very similar to the ones made in the past by Jamie Dimon, JP Morgan Chase CEO. In the past, Mr. Dimon said that cryptocurrencies are a fraud.

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