The Canadian businessman and TV personality – Kevin O’Leary (a.k.a. Mr. Wonderful) – believes the ongoing decline of the cryptocurrency market is a healthy event that will clear out the insignificant projects and leave only the meaningful ones. He vowed to HODL his crypto positions, advising investors to endure the present volatility to gain in the long run.
‘I’m Not Selling Anything’
Ever since he turned into an advocate of the digital asset industry, O’Leary has backed the sector during good and bad times. Touching upon the latest crash (when bitcoin dipped below $18,000), he said volatility is something normal, and it should not push investors out of the ecosystem. He further asserted that he will not liquidate any of his crypto positions:
“I’m not selling anything. Long term, you just have to stomach it. You have to understand you’ll get volatility and that some projects aren’t going to work.”
The Canadian has invested in 32 different digital assets, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Avalanche (AVAX), and more. Earlier this year, he revealed that his crypto exposure represents 20% of his total wealth. He also believes diversifying is vital as one couldn’t predict which asset will emerge as the most successful.
Commenting further on the downturn, O’Leary argued that the crypto industry will actually benefit from it. In his view, the turbulence will sweep small projects that have no place in the market. Such significant drops could also indicate that the industry will soon head towards a recovery phase.
Subsequently, Mr. Wonderful gave his two cents on last month’s Terra fiasco. The project’s native token LUNA and its algorithmic stablecoin UST crashed to virtually zero, which led to colossal investors’ losses and panic in the space. Once again, O’Leary maintained the position that such a crash could be beneficial and help the market mature:
“It’s nothing, a rounding error in the context of a sovereign wealth. It’s bad for investors, but they’ve educated the market on what not to do. It’s a good thing.”
BTC is Never Going to Zero
Two months ago, O’Leary reiterated his support for the primary digital asset, forecasting its price will never plunge to $0. He explained that such a scenario is impossible since BTC has emerged as a store of value similar to gold. As such, he has distributed the same amount of his wealth to both assets:
“Bitcoin is never going to zero. This is a personal opinion. There are enough people around the world that see it as a store of value, me included. It is a 5% weighting in my portfolio, just like gold is.”
The businessman also believes applying comprehensive regulations in the US cryptocurrency sector will be a tipping point. At first, the development will boost bitcoin, and later altcoins will follow suit, he added.