Kevin O’Leary Explains the Science Behind Investing in Crypto

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Terence Thomas Kevin O’Leary is a well-known actor. He is a Canadian businessman, financier, and television personality best known for his appearances on the reality shows Dragons’ Den and Shark Tank. In a recent interview, he talks about his way of investing in cryptocurrency and how he considers crypto to be software. O’Leary fiercely condemned the largest cryptocurrency as “garbage” in early 2019, but his position has since completely altered.

Because the S&P 500 now has 11 sectors, most experts recommend investing no more than 20% in any one sector and no more than 5% in any single stock.

In a decade, O’Leary forecasts that crypto, blockchain, and innovative payment services will become the S&P 500’s 12th sector. He now holds 32 roles in the digital asset sector, such as positions at Solana, Bitcoin, and the blockchain startup Polygon. He noted that no single part takes up more than 5% of the allotted 20%.

“Bitcoin is not a coin, it’s software,” O’Leary said. “And the same goes for other tokens like Ethereum, helium, and Solana. If you believe there’s long-term economic value in software, then you can give it a 5% weighting within your operating mandate. My larger positions are ones I think look like a great economic proposition.”

“You never know what’s going to work,” O’Leary advises. He went on to say that just one or two winners out of ten positions can cover all the losers.

When deciding whether or not to invest in a firm, particularly one in the emerging Web3 field, O’Leary considers what problem is being solved and whether or not that problem is economically valuable.

When asked about his current investments in the metaverse, which is the talk of the town, he said, “I would probably put something like my wine business in the curated metaverse first, and I would advertise there and provide tokens for transactions, as long as it’s a place where I feel safe for my brand.”

Furthermore, Bitcoin mining, according to the “Shark Tank” star, will become even more sustainable in the long run. Hydroelectricity and nuclear energy, he predicts, will become the primary energy sources for mining.

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Vidhi Narula
Vidhi Narula

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