$BTC #bitcoin
The Investor's Mind: Understanding Risk-On and Risk-Off Cycles
For O'Leary, the volatility that gives many headaches is pure profit for exchanges. Whether the price of BTC or any other crypto goes up or down, they take their cut for the infrastructure they provide. It's like those who sell picks and shovels during the gold rush—it's a surefire business!
When it comes to where he puts his money to get returns, "Mr. Wonderful" is clear: USDC. This stablecoin offers him a juicy 3.822% annual yield, far surpassing what a traditional bank offers. Watch out, he drops an interesting tidbit here: he is a shareholder of Circle, the company behind USDC. Transparency above all! Of course, with iron discipline: never more than 5% in a single position and a cap of 20% per sector, including cryptos.
Now, let's talk about his "buts." O'Leary is not a fan of BTC ETFs. For him, it makes no sense to pay fees for something you can buy directly. If what you're looking for is volatility, he says, buy BTC without intermediaries! He is also not convinced by MicroStrategy's strategy of accumulating BTC on their balance sheet. He admires Michael Saylor, their CEO, but prefers to hold the BTC directly in his wallet.
However, if there is one topic that truly excites O'Leary, it is regulation. He sees it as the master key for large institutional funds to dive into the crypto arena. Imagine the amount of money waiting in the margins—trillions of dollars ready to enter once there are clear rules and a solid compliance framework. That is why he is very optimistic about the potential approval of a stablecoin law in the U.S., something he considers a catalyst for growth and a boost for exchanges.
