The businessman assures that the institutions will not accept Bitcoin mined in sanctioned countries such as China. O’Leary called Bitcoin “junk” less than two years ago, but now he invests 3% of his portfolio in cryptocurrency.
Kevin O’Leary recently said that he will not buy cryptocurrencies if he does not know “where they were mined, when they were mined, and where they come from.” “Not from China as there will be no blood coins for me,” the billionaire businessman added.
In recent days, O’Leary aired his opinion on the pioneering cryptocurrency on CNBC television. He assured that he will only acquire Bitcoin from countries that mine using sustainable hydroelectric energy instead of coal.
The Canadian businessman called the Bitcoin mined in China a “blood coin”. He thus drew a parallel between the cryptocurrency and the “blood diamonds” produced in Africa to finance insurgencies.
Institutions Seek to Restrict Cryptocurrencies Mined Using Coal
According to the billionaire, large institutions could impose new restrictions on Bitcoin, and other cryptocurrencies mined without following certain environmental regulations. They would also restrict crypto assets mined in countries that violate human rights and restrictions on carbon emissions.
“Institutions will not buy coins mined in China, using coal for electricity, or [in any other] sanctioned countries,” O’Leary said. He added that institutional investors do not want to back China because of the human rights violations in that country.
However, it will be difficult for O’Leary and institutions to detect “green” Bitcoin not “made in China”. China had processed 95% of the mined Bitcoin blocks until last August.
The University of Cambridge conducted a study together with BTC.com, Poolin, and ViaBTC. The document indicates that China processes 65% of the hash rate, while the United States (7%), Russia (7%), Kazakhstan (6%), Malaysia (4%), Iran (4%), and Venezuela (0, 42%), among other countries, handle the remainder.
Of a total of 18 million BTC in circulation, China has been the main miner. Concerning the remaining 3 million BTC, China has enough infrastructures to mine a large part.
O’Leary Rejected Bitcoin but Now Invests in the Cryptocurrency
The businessman and co-host of the reality show “Shark Tank” announced that he invests 3% of his portfolio in Bitcoin (BTC). However, he called the pioneering cryptocurrency “junk” less than two years ago.
Analyst Niall Ferguson said that there has been a lack of foresight about the future of money on the part of the United States. That now seems to worry the country’s legislators, given that global financial hegemony remains vulnerable to a potentially fatal challenge. The US monetary authorities underestimate the threat that China’s cryptocurrency poses to the dominance of the US dollar.
Green Bitcoin Mining Gains Strength in North America
What Kevin O’Leary thinks is in line with the latest moves by mining companies to establish themselves in North America. The latter seeks to extract Bitcoin using renewable energy.
For example, Canadian clean-tech blockchain company MintGreen announced the closing of a funding round. With this, they seek to recycle the heat from Bitcoin mining.
Likewise, Link Global Technologies, dedicated to Bitcoin mining, and Neptune Digital Assets, focused on blockchain technology, join this “green” movement. They say that they will build a Bitcoin mining farm that will use wind and solar energy, as well as natural gas.
By Alexander Salazar