“Mr. Wonderful” Kevin O’Leary, the Canadian businessman well-known for his appearance on the TV show “Shark Tank,” thinks FTX will be “the most successful bankruptcy in American history.”
O’Leary made the remark during a conversation with the personal wealth and finance specialist Nicole Lapin on the “Money Rehab” podcast that aired on Sep. 15.
During the course of the conversation, he shared his crypto recommendations, outlook on crypto’s future, and interest rate policy, among other topics.
Related: What is Crypto? Cryptocurrency explained
Kevin O’Leary said he is treating crypto the way his mother, Georgette, would, which is to allocate no more than 20% of your portfolio to these assets. He said he has allocated 19.5% of his portfolio to crypto.
“I don’t just buy the asset, I buy the infrastructure.”
O’Leary expanded on his crypto strategy and shared that he owns shares in crypto exchanges like Robinhood (Nasdaq: HOOD), Coinbase (Nasdaq: COIN), and WonderFi Technologies (WONDF: OTCQB).
A crypto exchange is trading regardless of the crypto assets’ prices and volatility, which is why he said he prefers them.
The “Shark Tank” star drew an analogy between the current crypto rush and the gold rush from 250 years ago. Back then, it would be far more prudent to buy pick-and-shovel factories instead of betting on gold because one could always buy gold at spot prices if and when it was found but tools to explore gold were always needed, he argued. This is why he liked the infrastructure, he added.
There are tens of thousands of cryptocurrencies but you only need Bitcoin and Ethereum to capture 95% of the volatility of the entire crypto market, O’Leary said. He shared that he owned BTC, ETH, and some stablecoin in bulk.
Owning Bitcoin and Ethereum together lets you stake, wrap, and get yields, he said.
Regarding the price volatility of Bitcoin, O’Leary said, “I don’t give a damn” because he said he doesn’t trade it. Bitcoin is like gold to him. What he benefits from is the yield from the coupling of Bitcoin and Ethereum, he said.
“It’s not easy, but I’m doing it.”
Crypto was the first word to come out of his mouth which he recommended as an asset that youngsters with only $1,000 should invest in.
As the discussion on infrastructure proceeded, O’Leary also reflected on his role as the paid spokesperson for one of the biggest crypto infrastructures that went bankrupt: the FTX crypto exchange.
