Investing in Dogecoin is worse than gambling says Kevin O’Leary in a recent interview.
Investing in a meme currency like Dogecoin is like putting your funds in red or black in a casino, said popular investor Kevin O’Leary. He went even further in a recent interview, indicating that it has no inherent value and should be classified as pure speculation.
O’Leary: Dogecoin is pure speculation
The meme token, which saw its birth in 2013, grew in popularity in 2021 as it received frequent social media engagements from Elon Musk early on and other celebrities later. As its price has exploded to a high of $0.75, however, some have seemed cautious, saying it’s nothing more than a bubble, which was likely to burst soon.
Kevin O’Leary, the Canadian businessman and author, possibly best known for his appearance as one of the hosts on the reality show Shark Tank, apparently supports the second narrative.
talking to CNBC, he highlighted the differences between Dogecoin and other blockchain projects that actually have inherent value, such as Etheruem, Solana and Bitcoin.
He believes that investing is, yes, a great game of speculation, but with different aspects. For example, if people allocate funds to stocks, they “speculate that earnings estimates will be met”.
“When you speculate on something like Dogecoin – this is no different than going to Las Vegas and betting on red or black – it’s pure speculation.”
He even classified it as “training“since DOGE “has no inherent value beyond what people want to do while speculating.“. As such, he concluded that he and his team do not own any part of the meme coin.
- Investing in Dogecoin is worse than gambling says Kevin O’Leary.
As mentioned above, O’Leary considers “all investment as speculation“. He believes that buying only fiat coins may make certain people sleep better, but in fact they would lose their investment as they would no longer be able to match inflation.
Instead, buying and holding a particular asset is speculation, even if it seems safe in theory. Cryptocurrencies are no exception, as their infamous volatility may be too extreme for some investors.
Consequently, O’Leary, who recently said that nothing will ever replace Bitcoin as the main digital asset, advised that investors should treat their crypto-assets as speculation and recalled that nothing is guaranteed in the markets.