This US Billionaire Buys Bitcoin at Cheap Times, Emphasizes the Need for Regulation

Kevin O'Leary, billionaire and star of the television show Shark Tank, says the crypto market needs regulation. This he said after buying Bitcoin (BTC) and other cryptocurrencies when the price dropped.

Importance of Regulation

In an interview with Stansberry Research, O'Leary said BTC experienced resistance in the $20,000 and $23,000 price ranges. He said BTC miners were still profitable with a production of US$ 7,000 per BTC.
“There has been a response to BTC miners due to environmental, social and corporate regulatory (ESG) concerns, but miners are starting to explore the abundance of nuclear and hydro power in a country like Norway,” explains O'Leary, quoted by News.Bitcoin.com.

Regarding regulation, O'Leary brought up a bill two weeks ago regarding stablecoins with a USD benchmark as a means of payment. The bill was pushed back until September, but O'Leary thinks it has a 50 percent chance of passing.He said this could happen because there is a struggle between the US Securities and Exchange Commission (SEC) and other regulators over crypto, tokens and NFTs.

Regulators and policy makers focus on payment systems such as credit cards, visa cards or capital market funds that have limited use in terms of the assets that can be stored. Therefore, the government will focus on the stablecoin payment system.O'Leary added that if the regulation is enacted in September, it will signal the government is ready to break through the ambiguity of policy-making and be a signal of optimism for the crypto asset market.

Regarding crypto investment strategies during a bearish trend, O'Leary said his company suffered a loss of up to 23 percent before successfully reducing it to 16 percent of the portfolio value.“Crypto markets are very volatile but I have always said this volatility exists in the unregulated asset industry because there is no buying from institutions,” O'Leary said.

Buy Bitcoin and Other Crypto Assets

He added, the value of his crypto assets had decreased by 40 percent before then recovered in a number of projects. However, some projects are still at a loss.Regarding BTC, Ethereum (ETH), Solana (SOL) and Polygon (MATIC) which are seen as the assets with the largest market capitalization, O'Leary said he is increasing his investment in these assets.

The investor takes advantage of extreme volatility to buy the biggest crypto assets such as BTC and ETH because he has a positive long-term sentiment.

According to O'Leary, crypto asset classes aren't as correlated with anything as many observers have expected, including inflation.