Millionaire businessman Kevin O’Leary has indicated that stablecoins are more valuable than Bitcoin due to their role in the global financial system. He also highlighted the “big opportunity” as one of the layer 1 networks could be the biggest beneficiary of traditional financial companies (TradFi) moving up the chain.
Kevin O’Leary praises Stablecoins over Bitcoin
In one X messageKevin O’Leary shared a FOX interview praising stablecoins over Bitcoin. He described BTC as a speculative asset whose price fluctuates due to its volatility. Meanwhile, the businessman called stablecoins an interesting product in the financial services industry, noting that they are valuable because they are backed by US treasury bills.
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O’Leary further noted that the “beauty” of these stablecoins is that you can transfer them in seconds, not days. As such, he explained how these stablecoins complement the current payment system, as one’s funds can sometimes be lost when using FedWire or bank transfer systems.
The businessman added that these transfer systems are also very expensive, which is another advantage that stablecoins have because stablecoins allow you to transfer funds at a fraction of the cost. As such, O’Leary suggested that stablecoins, rather than Bitcoin, could have a significant impact in the real world. However, he highlighted BTC’s lead, noting that it is commonly mentioned digital gold.
It’s worth noting that O’Leary is a Bitcoin bull, despite his comment that BTC is a speculative asset. Last month, he revealed that he had consolidated his crypto holdings into just BTC and Ethereum after years of gaining exposure to other tokens. The businessman explained that he made this move to consolidate into just BTC and ETH after a regulatory shift and institutional analysis forced a reassessment.
The big opportunity for crypto networks
As part of his interview, Kevin O’Leary also said that there is a big opportunity for crypto networks, predicting that the S&P500 could use blockchain technology for contract analysis, inventory management and logistics. He noted that he doesn’t know which network will benefit the most because no one knows which blockchain these companies will standardize on.
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However, he noted that the winner among these crypto networks will emerge once at least one company in each of the economy’s eleven sectors chooses to standardize on that blockchain network. It’s worth noting that Ethereum currently appears to be leading Bitcoin and other layer 1 networks in this regard.
Ethereum is currently the leader in RWA tokenization, with the network holding 67% market share of all tokenized assets. RWA.xyz Data shows that the network has a total RWA value of $18.6 billion, excluding stablecoins. Institutions have notably chosen Ethereum and other newer layer 1 networks over the Bitcoin network, which lags behind in RWA tokenization.
Featured image from Pixabay, chart from Tradingview.com