Kevin O’Leary warned investors about the possible risks of investing in a crypto asset that has no inherent value like Dogecoin.
Investing in a meme coin like Dogecoin is like putting your funds on red or black in a casino, said the popular investor – Kevin O’Leary. He went even further in a recent interview, indicating that it has no inherent value and should be classified as pure speculation.
O’Leary: Dogecoin is Pure Speculation
The meme token, which saw its birth in 2013, blossomed in popularity in 2021 as it received frequent social media engagements from Elon Musk at first and other celebrities later. As its price blew up to an all-time high of $0.75, though, some sounded a note of caution that it’s nothing more than a bubble, which was prone to burst soon.
Kevin O’Leary, the Canadian businessman, and author, possibly best known for his participation as one of the hosts in the reality TV show Shark Tank, apparently supports the second narrative.
Speaking to CNBC, he outlined the differences between Dogecoin and other blockchain projects that actually have inherent value, such as Etheruem, Solana, and Bitcoin.
He believes investing is a large part game of speculation indeed, but with different aspects. For instance, if people allocate funds in stocks, they “speculate that the earnings estimates will be met.”
“When you speculate on something like Dogecoin – that’s no different than going to Las Vegas and putting your money on red or black – it’s a pure speculation.”
He further classified it as “entertainment” as DOGE has “no inherent value other than what people want to do as they speculate.” As such, he concluded that he and his team do not own any portions of the meme coin.
Everything is Speculation
As mentioned above, O’Leary considers “all investing to be speculation.” He believes buying only fiat currencies could make certain people sleep better, but they would actually lose on their investment as they won’t be able to match even the inflation anymore.
Instead, buying and holding a particular asset is speculation, even if it sounds safe on theory. Cryptocurrencies are no exception, as their infamous volatility could be too extreme for some investors.
Consequently, O’Leary, who recently said that nothing will ever replace Bitcoin as the top digital asset, advised that investors should treat their crypto holdings as speculation and reminded that nothing is guaranteed in the markets.