Kevin O’Leary says “Idiots” hold back crypto, but regulation can strengthen Bitcoin value

Bitcoin BTC / USDthe world’s largest – and first – decentralized cryptocurrency, will quadruple in value if the sector is regulated, according to Shark Tanks Kevin O’Leary in an exclusive interview with Benzinga.

O’Leary, a renowned capital investor and entrepreneur in his own right, went on to discuss a number of topics, including the cleansing of “bad companies” and the ongoing bear market, which he calls “a blip.”

“Extraordinary outcomes take time,” he says.

No bottom in sight yet

“A bottom is usually created when there is a catastrophic event such as a major player going bankrupt or someone is in big trouble to buy crypto with over-borrowing. When such an event occurs, the markets will bottom out. Until then, there is no bottom,” he said. O’Leary.

Events such as the collapse of companies such as Voyager Digital, which went bankrupt earlier this month, “do not matter,” he added. “When a major catastrophic event happens, it’s going to be very ugly.”

See also: Crypto A Con? Jim Cramer sounds the alarm

More pain is coming

The over-borrowing has not been shaken by the market yet, and therefore there is more pain in the future.

“Since there are no regulations in place, we do not know who will blow up when,” O’Leary said. “But the positive thing is that when the damage occurs, the damage is diversified in the form of more countries involved and more entities that are in the picture. But the disadvantages outweigh the positives.”

Regulations will involve institutional investors

When it comes to regulating the crypto sector, O’Leary explained how it could bring stability, as well as attract institutional investors to asset classes such as non-fungible tokens (NFTs), stack coins and cryptocurrencies.

“The best thing is to start by regulating stack coins,” he said. “It will be a great encouragement for investors. Cryptos will not recover until there are concrete guidelines, as there is currently no ownership with sovereign wealth managers or asset managers. Therefore, there is simply not enough participation for it to be a real asset class. “

The US Securities and Exchange Commission will notice and initiate regulations when more companies go bankrupt and more investor money is lost, O’Leary predicts.

See also: Kevin O’Leary – Trillions of dollars will flow into the crypto overnight

Celebrate cleansing of weak leadership

Asked to comment on the pain inflicted by crypto companies when it comes to hits on bottom line numbers, liquidations and bankruptcies, O’Leary said that this is an incipient industry and corporate cleansing is a healthy sign.

“What is happening with these companies is not surprising. Weak business models, management and managers who do not understand the asset class in the first place are cleaned out and the market gets rid of idiotic management, “he said.” Only when the idiots are out can an industry come out stronger. . We should celebrate this cleansing. “

Crypto also has many critics, including billionaires Warren Buffett and Charlie Munger. But there are always critics in a new asset class, says O’Leary.

“They are very successful, does not mean they are entitled to cryptocurrencies,” O’Leary added. “The productivity, transparency and efficiency of the blockchain is enormous in the long run. The other way to look at it is this – there will be unique institutional capital in cryptocurrencies. The current bear market is just a blip. Extraordinary results take time.”

Quotes an analogy of the e-commerce giant Amazon.com Inc. AMZNsaid O’Leary since it was listed on the stock exchange, the company’s shares have been weakened by 38-50%, but good management ensures that such disadvantages are temporary.

BTC will quadruple if the regulations are in place

Regarding the value of Bitcoin over the next two years, O’Leary says: “It will trade over what it is today. I am more concerned with having regulations in place so that individuals can buy crypto as regulated security, such as a Bitcoin ETF. Once the regulations are in place, the price of Bitcoin will quadruple. “

Kevin O’Leary speaks at the Benzinga Cannabis Capital Conference in April 2022. Photo by Dez Smith.