The importance of digital currencies such as Bitcoin (BTC) and Ethereum (ETH) has increased with the deterioration in global markets, rising oil costs and inflation that has not been seen for decades, with the Russian invasion of Ukraine.
As digital assets continue to become more and more important, debate continues among global regulators over whether these assets should be banned.
Investor Kevin O’Leary told Kitco News that banning Bitcoin and other cryptocurrencies is no longer an existential threat.
“We have no way of banning Bitcoin or anything that promises something economical in terms of developing new technologies for financial services and payment systems”
Roy Niederhoffer, the founder of Niederhoffer Capital Management, believes that Bitcoin can be banned.
Niederhoffer reminded investors that there was a time when even owning gold was prohibited in the US:
“There is a possibility that Bitcoin will be banned. Private ownership of gold is banned in many countries, including the United States. However, if such a thing did happen, there would be such chaos and hyperinflation that Bitcoin would definitely have made more money at that point. You’ll definitely want to load up on Bitcoin if it gets banned”
While O’Leary and Niederhoffer disagree on the ban, they agree that cryptocurrency regulation is inevitable but will result in a massive rally.
O’Leary said:
“When regulation is made, institutions will pour trillions of dollars. those who are peculators will benefit from the fact that they will be indexed and that will be a huge plus”
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