Billionaire investor Howard Marks says bitcoin will be shown 'not to have any substance'

  • Bitcoin is "not an investment ... it's a trade," billionaire investor Howard Marks said Wednesday.
  • Those who are buying bitcoin are only doing so "because they think someone will buy it from them at a higher price," according to Marks.
  • Bitcoin has had a rough 2018, with its total market capitalization having fallen roughly 50 percent this year, according to CoinMarketCap.
Howard Marks, Co-Chairman, Oaktree Capital 
David A. Grogan | CNBC
Howard Marks, Co-Chairman, Oaktree Capital 

Billionaire investor Howard Marks took aim at bitcoin Wednesday, doubting the cryptocurrency's future in remarks at the eighth annual CNBC and Institutional Investor Delivering Alpha conference in New York.

"It's not an investment ... it's a trade," Marks said. "In the long run, I think it will be shown not to have any substance."

He said those who are buying bitcoin are only doing so "because they think someone will buy it from them at a higher price."

"Not because they can specify its intrinsic benefits. Not because they can judge the intrinsic value. But only because they think it's going up," Marks said.

Marks' Oaktree Capital had $121 billion of assets under management as of March. The investor has a net worth of $2 billion, according to Forbes.

"This is what we called, when I was a kid, 'the greater fool theory,'" Marks added.

Bitcoin has had a rough 2018: The digital currency's total market capitalization has fallen roughly 50 percent, with a current value of more than $125 billion, according to CoinMarketCap. Bitcoin crashed from $20,000 at the end of 2017 to under $6,000 by June.

It has seen a resurgence recently, jumping more than 10 percent Tuesday and breaking above the $7,000 level to reach its highest level since June 9th, according to Coinbase.

WATCH: Bitcoin hits 7-week high on Coinbase

Previous Years

  • CNBC and Institutional Investor hosted the 7th Annual Delivering Alpha Conference on September 12, 2017.

  • Delivering Alpha 2017 stage, signage

    Meet the 2017 advisory board of Delivering Alpha, which takes place on September 12, 2017 at The Pierre in New York City.

  • The stage at Delivering Alpha 2016 in New York on Sept. 13, 2016.

    CNBC and Institutional Investor hosted the 6th Annual Delivering Alpha Conference on September 13, 2016.

About

CNBC and Institutional Investor are pleased to host the 8th Annual Delivering Alpha Conference in New York City on July 18, 2018. Please take note of the new month for 2018. Delivering Alpha continues to be an incomparable who’s who of the investor community with leading asset manager and institutional investors offering candid views along with illustrious political and economic commentators appearing in short segments moderated by CNBC talent and II editors.

To request additional information on Delivering Alpha, please contact lyao@ttivanguard.com.