Bitcoin scam warning: currency is ‘pyramid scheme’ says top investor

The respected Wall Street boss warned clients agains investing in the digital money, which has surged to record highs this year. But the co-chairman of Oaktree Capital said Bitcoin has

little value and its priced has been pushed up by speculators. Mr Marks previously predicted both the financial crisis and that the dotcom bubble would burst, according to CNBC. He told

clients: "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 investor compared cryptocurrencies to the Tulip mania of 1637, the South Sea bubble of 1720 and the internet bubble of 1999. BILL GATES:

BITCOIN IS MORE CONVENIENT THAN CURRENCY He added: "Serious investing consists of buying things because the price is attractive relative to intrinsic value. "Speculation, on the

other hand, occurs when people buy something without any consideration of its underlying value or the appropriateness of its price." Bitcoin suffered a crash earlier this month but has

since bounced back and is now up by almost nearly 160 per cent this year. Its success has prompted values to increase in other digital currencies. Ethereum cryptocurrency is up around 2,300

per cent in year to date. RELATED ARTICLES The digital currencies limited supply has caused some experts to compare it to safe havens, such as gold. And a number of experts have predicted

Bitcoin's value will reach much higher in the coming years, if it becomes more mainstream. Sheba Jafari, the head of technical strategy at Goldman Sachs could reach $3,691, from current

levels of around $2,600.