Shark Tank star Kevin O’Leary has recently claimed he sees bitcoin as “garbage” and that it’s a “digital game,” over what appears to have been a failed real estate deal he tried to use bitcoin in.
Speaking to CNBC during its “Squawk Box” show, Kevin O’Leary noted he believes the flagship cryptocurrency is a “useless currency,” as when trying to transact large amounts the person received the funds wants “some guarantee of its value.” He said:
To me, it’s garbage, because you can’t get in and out of it in large amounts.
O’Leary’s poor experience with the cryptocurrency came as he tried to buy a Swiss real estate with BTC, and was unsuccessful because the other party seemingly wanted a “guarantee that the value comes back to the U.S. currency.”
In an example the billionaire used on the show, he said that if one would want to “buy a piece of real estate for $10 million in Switzerland” the guarantee would have to be there, meaning the person using bitcoin could end up paying more because of its volatility.
You have to somehow hedge the risk of bitcoin. That means it’s not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.
O’Leary added he isn’t a fan of any cryptocurrency, and that invested in cryptocurrencies before as part of a challenge. He revealed he “bought all the crypto crap” and that the $100 he put in crashed 70%, to now be worth $30.
The investor’s purchase was likely made early last year, when most cryptocurrencies were close to their all-time highs, and before the bear market. Bitcoin, for example, dropped from a near $20,000 high to a $3,200 low before recovering.
To ‘Mr. Wonderful’ “today the hot digital is bitcoin,” but “tomorrow it could be whatever. Despite O’Leary’s distrust of cryptocurrencies, he has reportedly invested $100,000 in a startup that makes it easier for users to convert spare change into bitcoin or other cryptocurrencies.
Featured image via Randstad Canada, Flickr, CC by 2.0
