Clearer regulations on stablecoins could make crypto a more viable investment option, according to famous millionaire Kevin O’Leary. The Shark Tank star says that institutional investors will never devote 30% of their portfolio to Bitcoin or altcoin projects. Bride, Cryptocoin. com
Let’s take a look at the statements of Kevin O’Leary, which we compiled as .
Kevin O’Leary shares why he’s waiting for a bull
Celebrity Kevin O’Leary of Shark Tank is also known as “Mr. Wonderful” said it will be ready to increase its crypto allocations by up to 20% as soon as there are clearer regulations on stablecoins. A former Bitcoin (BTC) skeptic, O’Leary is a strong proponent of the cryptocurrency, which currently accounts for more than 10% of his investment portfolio. O’Leary specifically focuses on dollar-pegged stablecoins, which he sees as an effective hedge against rising inflation levels. He also states that by staking stablecoins, returns of up to 6% can be achieved. In a recent interview on this topic, O’Leary said:
When inflation is 6%, your purchasing power 12 months from now is 6% less. And that’s too much. I am a big advocate of solving this problem with stablecoin.
A clear regulatory framework will allow O’Leary to convert large cash positions into stablecoins. However, it is currently unable to invest more than 5% in stablecoins due to regulatory restrictions. On that matter, O’Leary said, “along with my own compliance department, they see stablecoins as equity that is no different than stocks.” According to O’Leary, his enthusiasm for stablecoins is shared by many institutional investors who are “quietly working on it in the background” and waiting for regulators to take action.
Billionaire drew attention to these altcoin projects
In addition to stablecoins, O’Leary also invests in Bitcoin, Ethereum (ETH) and other cryptocurrencies. He argues, however, that due to the volatile market, these cryptocurrencies are unlikely to make up a large portion of an institutional investor portfolio:
You will not reach 20%, 30% in Bitcoin in a corporate or sovereign mission. Stablecoins have this potential.