Bitcoin’s impressive start of 2021 seems to have shocked major players in the investment market. Some notable names in this regard include judges of the popular show Shark Tank Mark Cuban, and now his co-host and businessman Kevin O’Leary, known to fans of the investor reality show as “Mr. Wonderful.”
Just two years back, the Canadian businessman and investor said Bitcoin was “garbage”, but he seems to have changed his tune as he announces plans to invest 3% of his portfolio in Bitcoin.
Referring to the recent bitcoin acquisitions by big names like Microstrategy, Square, and Tesla, O’Leary tweeted:
“Changes in the regulatory environment have changed my mind about participating. I will also invest in sustainable miners to avoid ‘blood coins’.”
Prior to this tweet, the shark tank judge had already hinted about his softened stance in an interview with CNBC’s Hadley Gamble on February 22. He said, “I actually think that digital currencies are here to stay.”
“I’m holding a 3% weighting in it between Ethereum and Bitcoin. The volatility sickens me, but I’m getting used to it,” he added.
Bitten by the Bitcoin bug it seems
However, a look at O’Leary’s past comments about bitcoin echoes a different sentiment. Back then he said Bitcoin was “garbage because you can’t get in and out of it in large amounts.”
He even elaborated with an example stating: “Let’s say you want to buy a piece of real estate for $10 million in Switzerland. They want a guarantee that the value comes back to the U.S. currency. You have to somehow hedge the risk of Bitcoin. That means it’s not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.”
Even a few weeks back, he was criticizing the volatility of the cryptocurrency market. “Should I respect it? Yes, I’m not against it,” he told CNBC. “But would I put a lot of capital into it? No, I don’t want to own something that goes up and down 30% in a day or a week.”
He said he owned less than $100 in crypto back then, but it seems the popular investor has given this is investment thought and has decided to get on board the trend.On the same day, O’Leary’s co-host Mark Cuban expressed his confidence in Ethereum stating that Ethereum smart contracts will spell big trouble for big SaaS (software as a service) companies.