“Shark Tank” / ABC
- Kevin O’Leary told CNBC on Thursday that bitcoin is irrelevant to financial markets and in danger of being regulated.
- His comments come as a growing number of organizations like Guggenheim and SkyBridge capital invest millions into the cryptocurrency, driving a rally of over 200% in 2020.
- “I’m waiting for the day that one of these regulators comes down hard on bitcoin. Grown men are going to cry when that happens. You will never see a capital loss like that in your It will be cruel, “he said.
- Treasury Secretary Steven Mnuchin is proposing a new regulation that would require some cryptocurrency traders to provide more information about their cryptocurrency identities and transactions.
- Check out the Business Insider homepage for more stories.
Kevin O’Leary told CNBC on Thursday that bitcoin is irrelevant to financial markets and that it is also in danger of getting serious regulations from institutional investors.
“Isn’t this a nothing burger? It doesn’t even amoeba a single cell,” said O’Shares chairman,
“I love talking about it, it’s fun to watch it go up and down, but during the day, when the bell rings, I don’t talk to anyone who cares about this. They don’t put capital to work in bitcoin. “
His remarks come as more institutional players pile up, validating the legitimacy of bitcoin as a store of value and a hedge against inflation. Earlier this week, SkyBridge Capital invested $ 25 million in a new bitcoin fund, while last month, Guggenheim filed to retain the right to invest 10% of its $ 5.3 billion Macro Opportunities Fund in Bitcoin’s Grayscale Trust.
O’Leary said the concept of digital currency is likely to come to fruition in the future, but investors should be careful glorifying bitcoin while it has yet to fulfill a defined role in financial markets and while it may still be regulated . This year, bitcoin has skyrocketed over 200%, and many crypto bulls predict an explosion of growth in 2021.
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Although regulations may be coming for the popular ticket. Treasury Secretary Steven Mnuchin is proposing new rules that would require some cryptocurrency traders to provide more information about their cryptocurrency identities and transactions. This does not seem to intimidate various institutional investors, but O’Leary, who said he has $ 52.77 in a crypto wallet, is more concerned.
“I’m waiting for the day that one of these regulators comes down hard on bitcoin. Grown men are going to cry when that happens. You will never see a capital loss like that in your It will be cruel, “he said.
O’Leary added: “This whole market, even if Bitcoin were to rise, another 2000% is completely irrelevant to the institutional client.”