Kevin O’Leary spoke at the Bitcoin 2022 Conference, voicing support for bitcoin and renewable proof-of-work mining. He believed regulations introduced by Bipartisan lawmakers could remove the uncertainty investors have felt towards the sector.
Regulations on Cryptocurrency Incentivize Capital Inflow
Kevin O’Leary, the famed investor and media personality nicknamed “Mr.Wonderful,” touted his support of renewable crypto mining, as well as proactive regulatory efforts, likely introduced by the US government in the near future.
Mr. Wonderful is an open crypto bull who previously revealed that cryptos, including tokens and blockchain companies, accounted for 20% of his investment portfolios.
O’Leary said in the conference that the US Congress is working on regulations targeted at the crypto industry, which he considered a positive sign because as the regulatory concern is clarified, capital would soon aggressively flow into the sector.
I have been spending a lot of time in Washington in the last three months. The good news is on a bipartisan basis there are many senators and rep that are thinking about this in a proactive way.
He boldly claimed that cryptocurrency will become the 12th sector of the S&P 500, the predominant index that includes the “strongest 500 companies” listed in the US stock market. O’Leary believes regulations are coming and emphasized that this will be a “good thing” for the industry.
Another topic that drew attention during the speech was renewable mining for proof-of-work protocols. He first criticized the SEC-initiated carbon audit standards, which would impose a quarterly audit on listed companies that conduct proof-of-work mining.
Bitcoin miners like Marathon Digital Holdings and HIVE Blockchain Technologies would have to get their carbon footprint reported by a third party, according to the proposed regulation.
Despite stating that “tracking error is so huge that no public auditor will sign off on those statements,” O’Leary also stated with confidence that regulatory requirements would push companies to adopt renewable energy like hydroelectricity, wind, and nuclear power for bitcoin mining, which, in the long run, would benefit the industry.
Stablecoins as the Reserve Currency
When it came to stablecoins, O’Leary considered the asset as “one of the fastest-growing asset classes outside of Bitcoin.” If issued stablecoins are fully backed by the US dollar, he believed stablecoins could be uplifted as the new reserve currency.
He warned that turning a blind eye to this new innovation would be a huge mistake because stablecoins, with immense power, could be used and quickly adopted by other countries.