Shark Tank’s Kevin O’Leary: Bitcoin Not Ready to Swim With The Big Fish

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shark tankMr. Wonderful, the Shark Tank multimillionaire, recently said that while Bitcoin may be going through an exciting price discovery phase, it is not liquid enough to garner genuine institutional interest.

“If I want to buy a million dollars’ worth of Bitcoin right now, I’ve gotta do a fair amount of work to pull that off,” he said. “I can’t get consistency with any single regulator on endorsing bitcoin for me to actually do a significant transaction.”

The price of Bitcoin grew significantly at the end of 2020, in three months quadrupling to reach $41k at it’s height. Still, as O’Leary explained on the popular finance podcast “The Pomp” and shared on the O’Leary youtube channel: cryptocurrency is nothing compared to other asset classes.

“Bitcoin is still a nothing-burger,” he said, “a giant nothing-burger.”

Before the asset class becomes big enough for the largest whales to sink billions into as an asset class, cryptocurrencies will have to change. It is simply too challenging to put money in and take money out, and unclear how that will be taxed or regulated in a personal or institutional portfolio.

In the future, O’Leary expects major regulation to approach the crypto space, as evident recently with the SEC charging U.S.-based Ripple over its XRP token.

“Give me the top seven cryptocurrencies, put them into an ETF wrapper, and let me invest in it with liquidity,” O’Leary said. “So that if I want to buy a million dollars of it in the morning and sell a million dollars in the afternoon, I can do that in an ETF format.”

But one thing that cryptocurrency proves, O’Leary said, is that traditional asset classes can be sold 24/7 just like digital currencies.

“Maybe what Bitcoin is telling us is we should have liquidy perpetually, pure price discovery because its always breakfast somewhere in the world,” O’Leary said. “It may be the way of the future, and in a way, if that happens, there would be less demand for something like Bitcoin.”

Last modified: January 15, 2021
Kevin Travers

Kevin Travers was a Reporter at deBanked.

Category: Bitcoin

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