Bitcoin News: Businessman Kevin O’Leary is confident that there may be a wave of institutional money flowing into Bitcoin. But first, an obstacle has to be overcome.
In an interview with Kitco News, O’Leary explains that although he is very optimistic about Bitcoin, big bucks will not enter the space until Bitcoin miners solve their environmental, social and corporate governance (ESG) issues.
“I talk to institutions every day. They will not buy Bitcoin until this ESG issue is resolved. They seem to have decided that they will stay within their current contract until these issues are resolved.”
Environmental, social and corporate governance (ESG) issues
ESG refers to three key factors in measuring the sustainability and societal impact of an investment in a company or business. O’Leary also highlights that big institutional players are racing to invest in the biggest crypto asset after solving their ESG issues.
The famous billionaire said:
“So the decision of the institutions is this: I will give 5% weight to ‘Bitcoin’. But I have a sustainability committee to respond to first, and I will only have my own in-house mined coin or be a shareholder in one I know is sustainably made.
O’leary concluded by saying:
“If that happens, and the corporate registration blockage opens, trillions of dollars of capital start coming in. I see Bitcoin outperforming stock indices for a very long time. But I can’t go over 3-5% weight in this case, it wouldn’t be rational for me. I guess the gist of the story is that money is really looking for the smoothest way to be productive. This is why DeFi is so popular. Imagine if I was able to get 5% returns on my gold over the years. That would be incredible. Well, I can do it with my cryptocurrency, so that’s really what I do in DeFi and I think I have the best team in North America.”