Shark Tank star Kevin O’Leary says regulatory uncertainty and growing quantum computing concerns are keeping Bitcoin (CRYPTO: BTC) institutional investors on the sidelines and holding price around $80,000.
Why Is BTC Struggling At $80,000?
In a recent interview, O’Leary identified two major obstacles preventing Bitcoin from breaking out of its $70,000 to $80,000 trading range.
- Stalled Clarity Act: O’Leary believes it is essential to provide the regulatory certainty institutions need, before increasing their Bitcoin allocations. He argued that despite BTC’s growing popularity, it is yet to establish itself as a mainstream sovereign wealth asset.
- Quantum computing is an emerging threat which could eventually challenge Bitcoin’s cryptographic security. O’Leary estimates quantum concerns now deter 15% of potential Bitcoin investors, up from his earlier estimate of 10%. While O’Leary continues to hold Bitcoin, he emphasized that a quantum attack is not inevitable. But, uncertainty surrounding a potential “Q-Day” is enough to discourage some institutional investors.
O’Leary’s latest warning builds on his earlier comments describing Bitcoin as a speculative asset while favoring regulated stablecoins for their relatively lower volatility.
He suggested Bitcoin could eventually reach $1 million if its quantum security challenges are resolved.
Quantum Computing, A Bigger Investment Opportunity?
O’Leary suggested investors should increasingly focus on companies developing quantum computing technology rather than concentrating exclusively on cryptocurrencies.
He singled out IBM as a leading name in the emerging industry, citing its established position in quantum computing.
“I think our new investment thesis for everybody should be how do I invest in quantum?” O’Leary said.
His comments suggest that quantum computing is becoming both a potential long-term security concern for Bitcoin and an investment opportunity.
Image: Shutterstock
Recent Comments