Businessman and TV personality Kevin O’Leary, who appears frequently on a business-themed reality show called Shark Tank, has decided to backtrack on his claims to buy bitcoins.
Recall, before that, he let slip that he was thinking about investing in the main cryptocurrency. Now the opinion of the millionaire has completely changed: during his recent interview with the famous fan of cryptocurrencies, Anthony Pompliano, O’Leary unexpectedly stated that the real value of Bitcoin is zero.
We understand what is happening.
Why is Bitcoin criticized?
The businessman claims that he will not be able to complete a “significant transaction” using cryptocurrency. The reason is the incompatibility of the regulatory framework on this issue throughout the world. Here is his quote, in which he shares the current attitude towards cryptocurrency. The replica is given by Cointelegraph.
I look at the value of Bitcoin compared to the value of all traded assets, and Bitcoin is still a hamburger out of nothing. The reason I argue that this is so is because not all institutions are willing to “play” with it.
That is, the presenter believes that since many companies and departments do not work with Bitcoin, this is an argument against him. We think this is an illogical explanation. The lack of mass popularity of BTC and other cryptocurrencies is primarily due to the youth of blockchain assets. For example, the Bitcoin network was launched in January 2009, and Ethereum, well-known to fans of cryptocurrencies, was launched in the summer of 2015.
With this in mind, many people did not even have time to figure out how blockchain and decentralization work – not to mention the willingness to work with cryptocurrencies. Let us remind you that before that, you still need to thoroughly study the topic of security, so as not to accidentally lose your savings due to the actions of hackers and scammers.
Here is a transcript of a conversation with Kevin. By tradition, we recommend that you look in order to better understand what is happening within the cryptocurrency industry. This is true for those readers who understand English by ear.
In other words, O’Leary is seriously concerned about the implications of potential regulatory pressure on large crypto investors. However, making very expensive transactions in Bitcoin is just much more profitable than in other assets. Recall that we have already calculated how much it will cost to transfer a million dollars to BTC. And these are real pennies against the background of bank fees.
At the same time, while some investors are plagued by doubts, others are taking advantage of the opportunities that the recent drop in the Bitcoin exchange rate has brought. According to analysts, the 100 richest Bitcoin addresses have become even richer, accumulating 16 percent more BTC over the past 30 days. In total, these addresses received more than 334 thousand BTC, which at the current rate of the main cryptocurrency is equivalent to $ 11 billion.
It turns out that the major players not only did not sell the cryptocurrency in a panic attack, but also replenished their own stocks of coins. And this behavior goes against the statements of Kevin, who sees a great risk in working with Bitcoin.
Most of the “moneybags” practically did not react to the recent drop in the price of Bitcoin from 41 thousand dollars to below 32 thousand dollars. Only seven addresses have withdrawn coins since the last all-time high on January 10. This fact is also confirmed by the opinions of several large crypto investors.
Note that not all of the aforementioned wallets belong to individuals. The rating includes at least ten crypto exchanges such as Huobi, Binance, Bittrex and Kraken. The rest belong to the category of big investors and wealthy hodlers. What is clear, however, is that the mood of the big guys is not easy to influence, even through price manipulation.
As the recent bounce in the Bitcoin chart showed, buying cryptocurrency for the long term is a good tactic right now. Regardless of short-term price fluctuations, the value of BTC continues to rise and is not going to stop for now.
We believe that such an investment decision is likely to be wrong. According to analysts, the latest movements in the rate of Bitcoin and other cryptocurrencies really indicate the transition of the niche to bull run – that is, a protracted stage of growth. However, this is just the beginning, that is, further changes in the charts should be even more noticeable. So O’Leary is clearly missing out on the chance to connect with assets that are unlike anything that came before them. And it seems like an omission even now.