Shark Tank celebrity Kevin O’Leary aka Mr. Wonderful says he would be willing to increase his crypto allocations by up to 20% as soon as there are clearer regulations around stablecoins.
O’Leary, a former skeptic of Bitcoin (BTC), is now a staunch advocate of cryptocurrencies, which currently account for more than 10% of his investment portfolio.
Mr. Wonderful especially focuses on stablecoins pegged to the US dollar, which he considers an effective hedge against rising inflation levels. By betting stablecoins, he noted, you can get up to a 6% return. He explained to Cointelegraph:
“When inflation is 6%, your purchasing power in 12 months is 6% lower. And all that is a lot. […] I am a big advocate of solving this problem with stablecoin. “
A clear regulatory framework would allow O’Leary to convert large cash positions into stablecoins. Currently, however, you cannot invest beyond 5% in stablecoins due to regulatory restrictions.
“My own compliance department considers stablecoins to be capital no different from a stock,” he said.
According to O’Leary, his enthusiasm around stablecoins is shared by many institutional investors, who are “quietly working in the background” and waiting for regulators to make their move.
In addition to stablecoins, Mr. Wonderful also invests in Bitcoin, Ether (ETH), and other cryptocurrencies. However, due to their underlying volatility, these cryptocurrencies are unlikely to make up a large part of an institutional investor’s portfolio, he claimed.
“You are not going to reach 20, 30% in Bitcoin in an institutional or sovereign mandate, just not. Stablecoins have that potential,” he explained.
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