Shark Tank’s Kevin O’Leary believes that good regulation will see trillions of dollars flow into the cryptocurrency industry overnight.
What Happened: In a recent episode of the Bankless podcast, O’Leary said he thinks cryptocurrency will become the 12th sector of the economy within 10 years because of the liquidity and productivity it adds to financial services.
“It’s so much better than what we’re doing right now which is so expensive and so slow. If I want to transfer capital over to Zurich to buy Nestle and Swiss francs, it takes me days and it costs me a fortune and it's incredibly inefficient,” said O’Leary.
“I could do it in two seconds with a stablecoin, and, yet, I can’t because we don’t have a policy on both sides of the ocean that lets me do that.”
The Shark Tank investor thinks that the days of unregulated cryptocurrency markets are numbered. He believes that once regulations come into play, sovereign wealth funds and pension funds would allocate as much as 50 to 100 basis points to cryptocurrency.
"And that's a huge amount of demand that would come into the market. And as bitcoin prices went past that 1% allocation, let's say, they'd sell it back down to 1%, but just importantly, if it dropped below 1%, they'd buy it back up. So there'd be an internal bid forever,” he said.
“The volatility would drop dramatically. There'd be price appreciation in Bitcoin. It would be good for everybody involved in crypto, but we can't do it without policy."
“It's the trillion dollars that'll come into this market overnight when it's regulated," he added.
O’Leary owns 32 different cryptocurrencies, including Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Polygon (CRYPTO: MATIC).
See Also: HOW TO TRADE CRYPTOCURRENCY
Price Action: According to data from Benzinga Pro, Bitcoin was trading at $20,700, up 3.37% in the last 24 hours.
Photo: By The Walt Disney Television on Flickr
