Marcus Lemonis, a self-made millionaire and the star of CNBC’s “The Profit” show, has recently weighed in on bitcoin and the cryptocurrency ecosystem, and revealed he’s more of a fiat currency fan.
Speaking to CNBC Make It, Lemonis revealed he doesn’t really care about cryptocurrencies like bitcoin and, as such, doesn’t know much about them. Nevertheless, he noted he prefers “good old American Cash.”
Lemonis was quoted as saying:
I like it in my pocket and I like it in the bank. And what I would encourage people to do is, if they're interested in something like [bitcoin], explore it — but nothing replaces good old-fashioned cash.
The entrepreneur added that those interested in bitcoin should study the cryptocurrency markets before putting in their money, but added that diversification is a smart way of making sure investors don’t risk too much by putting all their eggs in one basket.
Lemonis, who in his show “The Profit” helps small business owners turn their business around, claimed there aren’t a lot of “small business opportunities in crypto” because of the market’s volatile nature.
He added, however, he believes too many bitcoin investors put in their money without understanding the flagship cryptocurrency, presumably hoping its price will surge like it did late last year, when BTC hit an all-time high of nearly $20,000, after starting 2017 at around $1,000.
Lemonis’ words echo those of “Shark Tank” star Kevin O’Leary, who stated last December he’s “quite sure” 99% of those investing in the cryptocurrency don’t understand how it works. A recent study conducted by IW Capital found 38% of the UK’s crypto investors don’t “understand” cryptocurrency, and that only 5% turned a profit.
Curiously, some bitcoin bears have also revealed they don’t understand the cryptocurrency. Prominent bitcoin bear Warren Buffett, Berkshire Hathaway’s CEO, who’s in the past claimed buying bitcoin isn’t investing, revealed he doesn’t short the market because he doesn’t understand it.
The billionaire investor has in the past slammed the cryptocurrency, claiming its “probably rat poison squared” that’s going to come to a “bad ending.” At the time Berkshire Hathaway’s vice chairman, 94-year-old Charlie Munger, compared it to “turds” and “dementia.”
Notably best-selling author Robert Kiyosaki, who wrote the book “Rich Dad, Poor Dad,” recently made a bullish case for cryptocurrencies as he revealed he believes these will eventually replace the “fake” fiat money.
Per Kiyosaki, an economic crash like no other is coming soon as the “foreshocks are sounding right now,” and fiat money is to blame because the government’s constant printing is inflating a large bubble. To hedge, gold, silver, and presumably cryptos, are the options.