Kevin O’Leary says Bitcoin is an asset, but not a viable currency – investors who don’t understand should stay out.
Shark Tank investor Kevin O’Leary has offered both encouragement and warning to Bitcoin investors in a recent interview on CNBC’s Make It. He offered a stiff warning for those who don’t understand Bitcoin, and an encouragement that the cryptocurrency is definitely an asset, if not a viable currency.
O’Leary was quick to point out that those wanting to invest in Bitcoin but who don’t understand it may create a ‘cocktail for disaster.’ He said:
“I’m quite sure that 99 percent of the people that own Bitcoin do not understand how it works. That always is a cocktail for disaster. You should never invest in something you don’t understand.”
Not a viable currency, but successful asset
Additionally, O’Leary made it clear that, at this stage, Bitcoin is not suitable as a currency for transactions. In his own experience, he was unable to complete a $200,000 transaction because the other party was concerned over volatility.
Nevertheless, the famous investor was not completely down on Bitcoin either. He views the cryptocurrency as one of the most successful assets in the world, based on global speculation.
In the final analysis, he concluded, Bitcoin may go up or down, and so it’s more of a gamble than an investment. He advises investors to only put in what they can afford to lose, saying:
“I don’t know if it is going to $40,000 or zero, and nobody knows. So, I just think it is a wonderful entertainment, just like a slot machine is, or putting chips on a roulette wheel. Right now it is fun, exciting, entertaining. As long as you can afford to lose everything you put into it, go with it.”
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Author: Jon Buck