- Kevin O’Leary says crypto can be the best protection against inflation.
- He is staking USDC in the short term.
- The Shark Tank star believes that the current inflation is temporary.
Kevin O’Leary, the popular Canadian businessman and Shark Tank star has said that crypto is the best possible investment to stake against inflation. In an exclusive interview with CNBC, O’Leary said that he has staked a small amount of his cash on stablecoin USDC. According to his financial advisors, staking USDC can get him a 4.7-6% return in 90 days.
“The pressure to get into crypto at an institutional level is very high”, he says. People with cash need some kind of protection against inflation, and crypto is right now the best possible way to get that protection.
O’Leary has recently sold off a major commercial real estate and is now sitting with 24% cash. Having too much liquid cash in a time of inflation isn’t good news for anyone. As prices go up and interest rates go down, your money continuously loses its value.
However, the Shark Tank giant believes that inflation is temporary. It’s being caused by the supply chain breakdown and misallocation of resources. He believes that it’ll go down as the global supply chain recovers.
Kevin O’Leary holds more cryptocurrency than gold
In 2017, Kevin O’Leary called Bitcoin ‘garbage’ on CNBC. However, almost 10% of his portfolio today is crypto holdings. He believes that diversification is the key in the crypto market. Not just Bitcoin and Ethereum, but altcoins like Solana also have a great potential future.
O’Leary explains why his stance on crypto has drastically changed over the last 3 years. “At that time, the regulator was not onboard with cryptocurrencies or tokens or monetization in any way“, he said in an interview with Stansberry. The Shark Tank star is now a great advocate for crypto and has recently praised Ethereum to soon become a deflationary asset.
Bitcoin and Ethereum is replacing gold as an inflation hedge
Since the record high annual US inflation rate was revealed last week, the crypto industry has been at the centre of most financial discussions. Yesterday, the CEO of MicroStrategy Michael Saylor also said that Bitcoin is going up forever, and it has already started replacing gold as the best inflation hedge.
Major coins like Bitcoin and Ethereum have a limited supply mechanism and dominant digital monetary networks. The volatility of these coins has also gone down significantly in the last couple of months due to wide adoptions.
Last month, the first Bitcoin-based ETFs were launched in the New York Stock Exchange, showing that regulators are slowly becoming more positive and optimistic about cryptocurrencies.
The news of inflation has caused a lot of panic in the market but as financial experts are indicating, cryptocurrency will be the biggest shield against inflation in the long term.