Kevin O'Leary "Bitcoin is Speculation, Stablecoins Have Real-World Value"

▲ Bitcoin (BTC), Tether (USDT), USDC, Dollar (USD)/AI-generated image

Renowned investor Kevin O'Leary clearly distinguished between Bitcoin (BTC) and dollar-pegged stablecoins. He assessed volatile Bitcoin as a speculative asset, while emphasizing that stablecoins, backed by reserve assets such as the US dollar and short-term US Treasury bills, possess real value.

Benzinga reported on May 19 (local time) that O'Leary appeared on Fox News and described Bitcoin as a “speculative asset” with high price volatility. While pointing out Bitcoin's volatility, O'Leary presented the backing of reserve assets such as cash and cash equivalents, and short-term US Treasury bills, as the basis for stablecoins' value.

O'Leary assessed that stablecoins could be a faster and cheaper payment method than existing remittance systems. He stated, “Using stablecoins can shorten remittances to about 1.5 seconds, significantly lower fees, and they are backed by the US dollar.” This statement highlighted the efficiency of stablecoins compared to the slow and costly existing financial system, FedWire.

He found the value of stablecoins not in the mere expectation of cryptocurrency price appreciation, but in payment speed, cost reduction, and dollar-based reserve assets. Benzinga reported that O'Leary explained the value of dollar-denominated stablecoins by linking them to reserve assets based on US Treasury bonds or short-term US Treasury bills. Tether, the world's largest stablecoin issuer, stated that its USDT holds over $141 billion in US Treasury bonds, but Benzinga added that this figure has not been verified by an independent audit.

O'Leary also saw great opportunities in the blockchain-based tokenization sector. He mentioned that assets and activities such as contracts, inventory, and logistics related to S&P 500 components could be tokenized on the blockchain. He explained that in this process, a specific blockchain could emerge as a significant platform when adopted as a corporate standard by at least one company in each of the 11 economic sectors.

O'Leary's cryptocurrency investment perspective is focused on owning infrastructure. Benzinga reported that he has consistently emphasized the importance of owning the underlying infrastructure that powers cryptocurrencies. He is known as an investor in cryptocurrency infrastructure companies such as Circle Internet Group Inc., Coinbase Global Inc., and Robinhood Markets Inc.

He has also previously stated that holding only Bitcoin and Ethereum (ETH) can capture 97.5% of cryptocurrency market volatility and returns. O'Leary described these two assets as the true “gold standard” of the cryptocurrency market. These remarks acknowledge the speculative nature of Bitcoin while revealing an investment perspective that finds practical utility in stablecoins and blockchain infrastructure.

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