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August 15, 2022
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A well-known cryptocurrency critic changes his mind about Bitcoin –

Last week, a Canadian businessman Kevin O’Leary (also known as “Mr. Wonderful” on the ABC TV show “Shark Tank”) said the improving regulatory mood changed his mind about cryptocurrencies. On February 23, Hadley Gamble, a CNBC presenter from Abu Dhabi, spoke to O’Leary about cryptocurrencies. A well-known cryptocurrency critic is no longer so negative about the largest of them. According to a report by Bitcoin.com, O’Leary said:

Actually, I think digital currencies will stay with us for good. Most people who want to hold them, including institutions in the past 90 days, are ready to accept volatility …

I am fascinated. I invest. I keep 3% of the wallet between Ethereum and Bitcoin. The volatility makes me sick, but I’m getting used to it …

And finally, I’m starting to wonder how to invest in bitcoin mining infrastructure.

A well-known cryptocurrency critic, however, likes Bitcoin?

After Gamble tweeted about this interview, “Mr. Wonderful, who has been a staunch critic of cryptocurrencies in the past few years, and Bitcoin in particular, has revealed that he is now ready to devote up to 5% of his personal cryptocurrency investment portfolio.

Anthony “Pomp” Pompliano, co-founder and partner at Morgan Creek Digital Assets, found the phrase quite amusing and told O’Leary’s that ultimately that 5% would change to 50%.

After confirming that he had indeed changed his stance on cryptocurrencies, O’Leary explained why:

Pumps about BTC

On December 24, 2020, Pompliano and O’Leary were interviewed by Scott Wapner on CNBC’s “Squawk Box”.

Wapner wanted to know why he shouldn’t expect bitcoin prices to fall in 2021, since most of the US population will be vaccinated by the end of 2021. In an environment of limited risk, assets such as Bitcoin may be less attractive to investors in an environment of lower pandemic risk.

Pompliano said:

So there are two things you need to understand about the structure of the market. There is one that I call a Bitcoin black hole. So this is the Grayscale, the Bitwise Index… those instruments where you can basically invest in a private placement create units or shares and buy Bitcoin with money from that private placement. This Bitcoin cannot come back; There is no redemption feature for these funds so it won’t come back to the market and something like what I call an addressable supply in circulation. Also when you have corporations – Square, MicroStrategy and others, they put BTC in their portfolio, on their corporate balance sheets. These funds don’t come back to the market.

The US government has just launched a nearly $ 4 trillion marketing campaign to devalue the dollar, and investors are listening. They pay attention and decide to move their capital to an area where they can protect their wealth, and Bitcoin serves not only as a store of value, but also as an asymmetric potential return. I believe that we simply did not have such a resource. And when people wake up and understand it, we’ll see an even greater flow of capital into this asset in the years to come.

O’Leary’s counterattack

O’Leary replied:

Last March, if you owned Bitcoin, you got slaughtered and had a lot more volatility than S&P. […] If you consider capitalization in all markets, Bitcoin [jest] completely irrelevant …

“And no institutional or freelance investor I’ve ever spoken to told me to index all cryptocurrencies for him. The reason why they do not want to invest in them is the fear of the regulator. I am waiting for the day one of these regulators takes a hard look at Bitcoin. Adult males will cry when this happens. You will never see such a loss of capital in your life. It will be brutal.

Let us remind you that O’Leary became famous as a well-known cryptocurrency critic due to his quite aggressive statements about BTC. On May 14, 2019, in an interview with CNBC, “Squawk Box” O’Leary said that Bitcoin is “useless currency”, “garbage” and “worthless” due to high price volatility.

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