Shark Tank investor Kevin O’Leary has offered both encouragement and warning to Bitcoin investors in a recent interview on CNBC’s Make It. He offered a stiff warning for those who don’t understand Bitcoin, and an encouragement that the cryptocurrency is definitely an asset, if not a viable currency. O’Leary was quick to point out that those wanting to invest in Bitcoin but who don’t understand it may create a ‘cocktail for disaster.’ He said: "I'm quite sure that 99 percent of the people that own Bitcoin do not understand how it works. That always is a cocktail for disaster. You should never invest in something you don't understand.”
Additionally, O’Leary made it clear that, at this stage, Bitcoin is not suitable as a currency for transactions. In his own experience, he was unable to complete a $200,000 transaction because the other party was concerned over volatility. Nevertheless, the famous investor was not completely down on Bitcoin either. He views the cryptocurrency as one of the most successful assets in the world, based on global speculation. In the final analysis, he concluded, Bitcoin may go up or down, and so it’s more of a gamble than an investment. He advises investors to only put in what they can afford to lose.
Read more here...Right now, Bitcoin is kinda evolving and it certainly is facing big challenges most especially on concerns like the scalability (resulting into clogging), ridiculously high transaction fees (turned off to many because Bitcoin is not made this way) and the high volatility rates (which we could not do anything because speculation is something so hard to control). However, we have to always remember that Bitcoin is just 9 years old...it has not yet celebrated its debut party! In other words, Bitcoin is still a child and there would be changes that it will have to undergo in the next few years. We have to give it an ample time to be fully matured.
Yes, it is true that there is a need for many Bitcoin holders to get educated as to what they are getting into. Education is the only way we can partly control volatility and for investors not to get burned in case something wrong can happen with Bitcoin. The great speculative movement right now is based on impulse and FOMO -- the fear of missing out! We need to realize that Bitcoin is much bigger than our desire to double what we invested and that it represented a shift of paradigm. Everybody should be a big part of that journey to success and empowerment -- a great window of opportunity presented to us by Bitcoin!
