Kevin O’Leary spoke at the Bitcoin 2022 Conference, voicing support for bitcoin and renewable proof-of-work mining. He believed regulations introduced by Bipartisan lawmakers could remove the uncertainty investors have felt towards the sector.
Cryptocurrency regulations encourage capital inflows
Kevin O’Leary, the famous investor and media personality nicknamed “Mr. Wonderful”, has touted his support for renewable crypto mining, as well as proactive regulatory efforts, likely to be introduced by the US government in the near future.
Mr. Wonderful is an open crypto bull who previously revealed that cryptos, including tokens and blockchain companies, accounted for 20% of his investment portfolios.
O’Leary told the conference that the US Congress was working on regulations aimed at the crypto industry, which he saw as a positive sign because as the regulatory concern was clarified, capital would soon be pouring in from aggressively in the sector.
I have been spending a lot of time in Washington in the last three months. The good news is on a bipartisan basis there are many senators and rep that are thinking about this in a proactive way.
He boldly claimed that the cryptocurrency would become the 12th sector of the S&P 500, the predominant index that includes the “500 strongest companies” listed on the US stock market. O’Leary believes regulations are coming and stressed that it will be a “good thing” for the industry.
Another topic that drew attention during the speech was renewable mining for proof-of-work protocols. He first criticized the SEC-initiated carbon audit standards, which would impose a quarterly audit on listed companies that conduct proof-of-work mining.
Bitcoin miners like Marathon Digital Holdings and HIVE Blockchain Technologies would be must have their carbon footprint declared by a third party, in accordance with the proposed regulations.
Despite stating that “tracking error is so huge that no public auditor will sign off on those statements,” O’Leary also stated with confidence that regulatory requirements would push companies to adopt renewable energy like hydroelectricity, wind, and nuclear power for bitcoin mining, which, in the long run, would benefit the industry.
Stablecoins as a reserve currency
Regarding stablecoins, O’Leary considered the asset “one of the fastest growing asset classes outside of Bitcoin”. If issued stablecoins are fully backed by the US dollar, he believes stablecoins could be elevated as a new reserve currency.
He warned that turning a blind eye to this new innovation would be a huge mistake because stablecoins, with immense power, could be used and quickly adopted by other countries.
