If you have watched CNBC’s ‘Shark Tank,’ you probably know Kevin O’Leary, aka Mr. Wonderful. If not, here’s a summary of his background.
Kevin O’Leary is a presumably tough businessman who hails from Canada. He co-founded SoftKey Products which, after changing its name, was acquired in 1999, making O’Leary a multimillionaire. Mr. O’Leary is not only a businessman but also an author, politician, and T.V personality.
Kevin O’Leary’s Crypto
In a Reddit Talk Session to discuss Mr. O’Leary’s views on cryptocurrencies and the future of its market, never heard before details were divulged regarding his crypto investments.
The “Shark Tank” investor, Kevin O’Leary, disclosed that he had bought his first Crypto in 2017and currently, his cryptocurrency exposure is near 10%.
“I’ve grown the portfolio remarkably,” O’Leary said. “At the beginning of the year, I was at 3% weighting. The target was to get 7% by year-end of the operating company’s assets. However, because of the appreciation of so many of the assets I have now, we’re almost at 10% today.”
Mr. O’Leary has a variety of crypto investments, including many digital coins and decentralized wallets, O’Leary said. “So, we’re going to end up at the end of the year with a very significant holding in crypto assets, and it’s not just bitcoin.”
The Crypto Strategy
When asked about his crypto portfolio, Mr. O’Leary could not disclose all of his holdings, given his ongoing projects. But he did reveal that he owns Bitcoin, Ether, and USD Coin.
Though he admits he owns “a lot of Ethereum,” O’Leary said he couldn’t wait for Ethereum because it was too slow.
“Some people think the game is over and Ethereum is it, but I don’t agree. I think for financial services there are many other alternatives, whether it be Solana or anything else,” he said. “I think we have to consider that, if you’re an investor like I am, you want diversification. That’s the key and I am going to reflect on that while I invest.”
In particular, when investing in Crypto, Mr. O’Leary challenged people to think of crypto investments as you would when buying shares in a software company. Because, after all Crypto is software too. “It is the same thesis,” he said.
In determining where to invest, Mr. O’Leary analyzes the software behind each currency.
“I am a software investor,” Mr. O’Leary said. “And i am going to put an allocation into the software of crypto because I believe it will change and be disruptive to a lot of different markets all around the world.”
Rather than analyzing “the pros and cons of bitcoin or another coin,” Mr. O’Leary said he asks himself the following: “Can I identify the best teams? Who are the best developers? How do I invest in them? What ledger is that? Should I own a piece of that, too?”
“That’s how I’m looking at it,” he said.
Similarly, his billionaire counterpart Mark Cuban also determines whether to invest in cryptocurrency based on its utility.
“We’re seeing a rush where there’s a lot of different blockchains that are competing,” Cuban said on a recent episode of the Next with Novo podcast. “When they start to put smart contracts to work, that’s when we’ll start to see things really level out. It’s going to come down to applications and integrations.”
However, it’s necessary to remember that cryptocurrencies come with risks as they are volatile and speculative. That is why experts advise investors that they should only invest what they can afford to lose.
For O’Leary, “some level of diversification is the key here. And I’m going to be reflecting that in how I invest.”