Many times experts tend to see alarms where the rest only seem to see fireworks. That was arguably the case with Shark Tank host Kevin O’Leary regarding Bitcoin. O’Leary was one of the first to speak with concern about the sustainability of Bitcoin, in early May. However, since then, the expert has found other details that he considers could be an opportunity for the cryptocurrency.
The sustainability of BTC, the dilemma to be solved
One of the most criticisms made of Bitcoin is that its mining requires a lot of energy. Even Tesla echoed this argument in May, when Elon Musk announced that the acceptance of BTC as a form of payment would no longer be possible. The reason? The same thing Kevin O’Leary mentioned about three weeks earlier, sustainability issues.
However, over the weekend, O’Leary said that now that problem was an opportunity. In that regard, he predicted that a shift among Bitcoin miners to more sustainable forms of energy could power the cryptocurrency. Even outperforming stocks by a wide margin over the next decade. «It’s a big problem and a great opportunity, I prefer to see the opportunity“O’Leary said.
What is needed for a renewed institutional investment in Bitcoin, and with it the surpassing of the actions according to O’Leary
The fact that a fraction of miners use non-renewable energy, such as some of China’s miners still running on coal-based electricity, has prevented several institutional investors from investing in BTC.
As such, O’Leary has enacted agreements with miners who use sustainable forms of electricity, such as the large Texas-based wind farm miners. The latter is done to show that mining Bitcoin can be done sustainably.
«We need to solve the problem of the institutional client. They want to invest in bitcoins. They can’t now, it’s a really strange situation»Said the investor. O’Leary remains optimistic, however, that institutional investors will find a way to be creative to make this work. He also believes that once that hurdle is overcome, Bitcoin would be on its way again to keep outperforming stocks going forward.
«I believe that over the next 10 years, the Bitcoin asset itself will outperform the S&P. So if you’re thinking about a 7 to 8% average over a decade on the S&P, I think Bitcoin would be between 300 and 400 basis points above that. I really believe it“O’Leary said.