March 3, 2021 | AtoZ Markets – Kevin O’Leary aka Mr. Wonderful who once described Bitcoin as a “giant nothing burger” has now joined the fan club.
In a tweet early this week the businessman who appears on reality TV show Shark Tank said he would be allocating 3% of his portfolio to Bitcoin, also looking at investing in sustainable crypto mining. He stated that the objective of his investment is to avoid “blood coins”- with a reference to “unethically mined diamonds” and under a mandate of 0 carbon.”
O’Leary stated that it was “changes in the regulatory environment”that swayed him towards the crypto. Further referring to recent acceptance of companies such as MicroStrategy, Square and Tesla buying Bitcoin.
O’Leary’s 180 on Bitcoin has welcomed some heat. Crypto evangelist Anthony Pompliano (Pomp) was among the commentators about his decision to embrace crypto.
Last week, the Canadian admitted he was softening his stance. In a recent interview with CNBC’s Hadley Gamble he stated that he believes they are here to stay, and further stated “I’m holding a 3% weighting between Bitcoin and Ethereum. The volatility can be excruciating to watch, but I am getting used to it”.
A great turn of events, because only 2 years ago he said Bitcoin was “garbage”, because you can’t enter and exit in large amounts. He explained at the time “say you want to buy a piece of real estate for $10m in Switzerland. They want a guarantee that value comes back to the U.S currency. You must somehow hedge the risk of Bitcoin. That means it is not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.” His skepticism showed as recently as three weeks ago when O’Leary was bemoaning cryptocurrencies’ volatility.
On February 10th he stated he would not own something that goes up and down 30% in one day or week. Further saying that he possessed less than $100 in crypto.
However, O’Leary is not the only one hot on Bitcoin. His TV sidekick and Dallas Mavericks owner Mark Cuban is also an up-and-coming crypto enthusiast as he states “Ethereum will disrupt big tech companies’ business models”. Cuban also believes that Bitcoin is “better than gold”.
Goldman Sachs Does a U-Turn
The reality TV personalities are not the only ones joining the crypto ranks. Although this is not a new arena for Goldman Sachs are set to deepen their push into digital assets.
After a three-year pause, the investment bank has relaunched its cryptocurrency trading desk with the aim of supporting BTC Futures trading. The bank has originally hoped to launch a crypto desk in 2017 but shelved its plans less than a year later due to regulatory fears. Nonetheless, the reopening of the crypto desk, set to happen Mid-March is part of the firm’s broader push into the digital asset marketplace, which might also see Goldman attempt to come forth with a Bitcoin Exchange-traded fund.
Bitcoin has great potential to be the best-performing asset of 2021, closing February 26% above the Stock-to-Flow model price and an unprecedented compound annual growth (CAGR) of 200%, their sudden change of heart doesn’t come as a surprise.