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- Both tech and crypto stocks are highly volatile, Wonderful said
- Cryptocurrencies are the biggest investment opportunity in 2022, according to O’Leary
- “Ethereum is software, like Google”
Shark Tank co-host Kevin O’Leary (also known as Mr. Wonderful) shared in an interview with Yahoo.Finance how cryptocurrencies are similar to the stocks of tech giants like Microsoft , Google, and Amazon, show that venture capitalists prefer tech companies that can easily invest in Bitcoin and Ethereum based on similar criteria.
“If you invest in Microsoft, Google and Amazon… what is the core thing that you are investing in? It’s basically software.” @KevinOLearyTV speak. $BTC “really software…if you are willing to invest in software [as] equity, why don’t you invest in software like ethereum? ” pic.twitter.com/2TgRoRsn5p
– Yahoo Finance (@YahooFinance) January 10, 2022
Both tech and crypto stocks are highly volatile, Wonderful said
O’Leary explains: Tech stocks have been volatile historically; many of which are traded on growth metrics and not necessarily on their earnings. He emphasized that the tech sector will continue to grow as none of us will be less likely to use Zoom, Microsoft or Google, despite the fact that the business models of those heavyweights have not changed.
Referring to Amazon stock, Wonderful said it adjusted 40-50% each year during the 17 years he owned it. Thus, he uses its inevitable volatility here as an opportunity to deploy his investment and essentially buy.
Cryptocurrencies are the biggest investment opportunity in 2022, according to O’Leary
In response to a question from the host about what he sees as the best investment opportunity in the new year, the Shark Tank co-host said that over the past 24 months he has been closely monitoring the money sector. electronic and blockchain, including tokens and NFTs.
O’Leary claims that many financial institutions have not even started investing in cryptocurrencies. He decided to talk to them face-to-face during the show and share how he personally understands this nascent and disruptive field of technology.
“Ethereum is software, like Google”
According to O’Leary, investors put their money in the aforementioned companies (Microsoft, Google, etc.) because they’re essentially investing in software — but in the form of stocks. Bitcoin, Ethereum, Polygon and blockchain in general are also types of software, he said. In particular, Ethereum is a type of software that provides a service in a globally used payment system. This is the “investment thesis” of Mr. Wonderful.
For choosing coins and blockchains to invest in, O’Leary applies the same rule he uses for stocks: no more than 5% of a portfolio in one position and no more than 20% in a sector. .
However, O’Leary has so far invested 10.7% more in crypto than his standard 20%, and he has a lot of positions in crypto.
According to O’Leary, he has accepted the fact that cryptocurrencies are even more volatile than tech stocks. But you have to get used to volatile Bitcoin the same way you get used to volatile Amazon stock.
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