Shark Tank Investor Kevin O’Leary Cautions Newbies to Learn More About Bitcoin Before Investing
Shark Tank investor Kevin O’Leary thinks that Bitcoin is definitely an asset, if not a feasible currency.
He, however, warned that investors who want to invest in the virtual currency should first learn more about it in order to avoid a ‘cocktail for a disaster.’
In a recent interview with CNBC’s Make It, O’Leary said that he believes that 99% of Bitcoin owners do not have an idea about how it works and they are holding a cocktail for disaster. He further argued that people should never invest in something they do not understand.
“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.”
During the interview, O’Leary clarified that he thinks that Bitcoin is not yet advisable to be used as a currency for transactions at this stage. He cited as an example his personal experience with the dominant digital currency wherein he was not able to complete a $200,000 deal due to the concern of his transacting partner over Bitcoin’s volatility.
He claimed that the other party would only accept the deal if he guaranteed the value of the virtual currency against the price of the dollar.
“If clearly neither side thinks it is stable enough to transfer in one minute, and they don’t even want to take one minute of risk, it is not a currency.”
He concluded that investing in Bitcoin is more of a gamble than an investment.
“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.”
O’Leary, whose net worth is valued at $400 million, has been involved in venture capital as well as angel investments through the show Shark Tank.