Next to Shark Tanker star Mark Cuban, Kevin O’Leary is now also speaking out about crypto. In an interview with Stansberry Research, he says that bitcoin will increase in value as soon as there is clarity about the regulations. In the meantime, he is discontinuing the USDC stablecoin due to high inflation rates.
Never happened before
He calls inflation an emergency. O’Leary says the Biden administration calls inflation “temporary.” “This is simply not true. The reason this is happening is that within two years – 24 months – we printed $3 trillion. That has never happened before, in any economy on Earth.”
If you do that in some countries, you get hyperinflation. But the US economy is so big that this effect is just smaller, but still 7%. These are gigantic numbers. We haven’t seen this since the 1980s.”
Inflation kills presidencies
O’Leary expects inflation to cause major problems. “Inflation is killing presidencies. Why? Because inflation hurts the most in food and energy.” He says that people are becoming unhappy because of the rising price of energy. Groceries are getting more expensive, and some people can’t afford it anymore. “People are taking this into the election,” said O’Leary.
O’Leary staket stablecoins
In the interview he says that he has stablecoins. He uses USDC for staking and receives 6.5% for it. “In this way I protect myself against inflation. But this is a cryptocurrency, and it’s not regulated yet, so I don’t expect institutional investors to venture into this just yet. In any case, cash is not a nice place to keep your funds.”
According to the Shark Tank star, institutional investors must comply with regulations and Environmental, Social and Governance (ESG) standards before they can invest in or stablecoins.
Bitcoin to 300,000 in 3 years
“At some point in the next two to three years, the US regulator is going to make a statement about cryptocurrencies. And they will rule over stablecoins and bitcoin itself first,” says O’Leary. “Once that happens, if I have a state fund or a retirement plan, I’m probably going to allocate one to three percent to it. And I want to go long on bitcoin when that happens. Bitcoin could go to $300,000 when institutions can finally buy it.”
“I can tell you with certainty at this point because I service sovereign wealth funds, retirement plans and indexing business. Despite all the hype surrounding bitcoin, none of these institutions own a single coin.”
According to the Shark Tank star, institutional investors must comply with regulations and Environmental, Social and Governance (ESG) standards before they can invest in bitcoin. “And I think that’s going to happen in the next two to three years.”
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