Shark Tank investor Kevin O’Leary believes that Bitcoin is not a worthwhile investment. As Bitcoin witnessed its best week in 2019 and moved past the $8,000 mark on Tuesday, the famed investors shared his concerns about the crypto industry. He expressed his views on Squawk Box TV show.
Is Bitcoin Really ‘Worthless?’
According to Mr. Wonderful, it is. Speaking to CNBC on Tuesday, he said that Bitcoin is a “digital game” adding:
“It is a useless currency. To me, it’s garbage, because you can’t get in and out of it in large amounts.”
He explained that the receiver of digital currency wants a guarantee of its value. The chairman of O’Shares ETF said that he tried to use Bitcoin to buy real estate in Switzerland but was unsuccessful in doing so.
He went on to suggest that if somebody wants to buy a piece of real estate of $10 million in Switzerland using Bitcoin, he would have to hedge the risk associated with the cryptocurrency. This is because people receiving Bitcoin want some kind of guarantee that the value of Bitcoin can return in the form of US currency. He said that having to do so means that Bitcoin is not a real currency as the receiver is not ready to bear the volatility that it brings.
Bitcoin Continues Upwards Movement
Despite what Mr. Wonderful believes, the market is responding very well to Bitcoin. The value of the world’s premier cryptocurrency has risen by over 120% this year. On Tuesday morning, BTC was selling for $8,325 according to CoinDesk. Though the recent rally cannot be compared to Bitcoin’s rise to $20,000 in late 2017, it has ended the year-long crypto winter for digital currencies.
For O’Leary, cryptocurrencies brought a 70% loss. He bought crypto worth $100 when he taught a Harvard class 18 months ago. He said that his investment is now worth only $30. He added that Bitcoin is a hot digital concept right now, but it could be “whatever” tomorrow.