Kevin O’Leary, Shark Tank star and billionaire investor, has predicted what would happen before Bitcoin (BTC), the largest cryptocurrency by market cap, could skyrocket to prices above $100,000.
In a new Stansberry Research interview, the billionaire pointed out that regulatory clarity is a vital catalyst for Bitcoin’s price growth. He said that the digital asset could appreciate by several multiples from current prices once institutional investors receive regulatory backing to buy crypto assets.
According to the billionaire entrepreneur, institutional investors need regulatory compliance and need to meet Environmental, Social, and Governance (ESG) standards before they can invest in Bitcoin and other digital currencies.
He then concluded that it would have been easier for institutional investors to buy Bitcoin if it’s categorized as software.
Kevin O’Leary noted:
“At some point in the next two to three years, the US regulator is going to rule on cryptocurrencies. And they will rule first on stablecoins and Bitcoin itself… And the very large assets by market cap.
“As soon as that happens, if I’m running a sovereign fund or a pension plan I’m going to allocate to it probably one to three percent. And I want to long Bitcoin when that happens.
“You want to talk about Bitcoin going to $100,000, $200,000 $300,000, it’s going to be when institutions can finally buy it…
“I can tell you with certainty right now because I service sovereign wealth funds and pension plans and in the indexing business. For all of the hype around Bitcoin, none of those institutions own a single coin.
“And they are not going to until their compliance departments allow for the ESG mandates to be ‘check the box on that and of course be compliant on the asset class itself. But when they do get that go-ahead, the price of the coin is going to appreciate dramatically…
“If you think about Bitcoin being software, which is what it is, and these institutions own Microsoft, they own Google. That’s all software too.
“So it’s very easy for them to get their heads around it as soon as it’s compliant. They will buy one to three percent. And that’s when the price is going to appreciate. And I think that’s going to happen in the next two to three years.”