Popular investor Kevin O’Leary has revealed that he still sees cryptocurrencies as a viable investment class despite the recent sales that rocked the markets.
In an interview with Yahoo Finance Live, O’Leary compared Bitcoin (BTC) and Ethereum (ETH) investments to the early days of some of the world’s leading tech companies that experienced violent price movements before becoming industry leaders. The Shark Tank star also said the following about what the biggest opportunity for investors is in 2022:
“What I’ve found really interesting in the last 24 months has been crypto and blockchain technologies and NFTs. You have to make a decision about this, and it’s very difficult for many institutions… and many of them haven’t even started their cryptocurrencies journey… I’m poking around this way and I think it will help investors think that way. If you’re investing in Microsoft, Google and Amazon, and most of these other platforms, what’s your investment? Google is software. Bitcoin is not a cryptocurrency. It is actually software. Blockchain is software… So the real verdict is, if you are willing to invest in Google as a productivity tool, why not invest in software like Ethereum? Because it also provides a service that is used globally. ”
O’Leary then laid out his strategy on how to choose from the tangle of investment options in the digital asset space:
“The question is, which coins, which tokens? For this, I apply the diversification rules that I apply to my stocks and bonds. No more than 5% in any position. Not more than 20% in the entire industry. I’m nowhere near 20% in crypto. I exceeded 10.7% in our operating company. ”
The macro investor says he acknowledges the extreme volatility of crypto, but also reminds people that Amazon often sees wild price swings before gaining market dominance.
“You have to get used to it, just like you are used to Amazon with 30% to 50% fixes. Same thing with bitcoin. ”
