Kevin O’Leary, investor in Shark Tank, says he still sees cryptocurrency as a viable investment class despite the recent sell-off that rocked the markets.
In a new interview with Yahoo Finance Live, O’Leary compares investing in Bitcoin (BTC) and Ethereum (ETH) to the early days of some of the world’s leading technology companies that suffered violent price movements before becoming industry leaders.
When asked what he thinks the biggest opportunity for investors will be in 2022, the Shark Tank star said,
“Something I’ve found really interesting over the past 24 months is cryptography, blockchain, tokens, and NFT technologies. [non-fungible tokens].
You have to make a two-way decision on these things, and that’s very difficult for a lot of institutions…and a lot of them haven’t even started their journey into crypto…
That’s how I’m going around it and I think it will help investors think that way. If you invest in Microsoft, Google, Amazon, and many of these other platforms, what base do you invest in?
Google is a program. Bitcoin is not a currency. They are actually programs. Blockchain is software…
So the real decision is if you want to invest in software because it is a productivity tool like Google, then why not invest in software like Ethereum? Because it provides a service… that is used globally. “
Next, O’Leary lays out his strategy on how to delve into the muddled investment options of the emerging digital asset space by sticking to the assigned portions of his overall portfolio.
“The question is what are coins, what are tokens, and what are blockchains? That is why I apply the same diversification rules that I apply to my stocks and bonds.
No more than 5% in any one position. No more than 20% in the entire sector.
I’m nowhere near 20% in crypto. It just passed 10.7% in our operating company.”
The big investor says he will accept the extreme volatility of cryptocurrency and reminds people that Amazon often experienced extreme price swings before achieving market dominance.
“I have a lot of positions. I will make the decision there that this is more volatile than tech stocks, and it certainly is. Bitcoin is having one of its worst beginnings. [to a year] Start.
But you have to get used to it, just like you should get used to Amazon where you will get 30% to 50% of the corrections. Same thing with Bitcoin.”
At the time of writing, Bitcoin is up slightly at $42,682 while Ethereum No. 2 crypto-asset is up 4.67% to $3,236.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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