Shark cage and Dragon’s Nest personality Kevin O’Leary takes a stand against what he calls ‘blood coin’, namely Bitcoin (BTC) mined in China. The investor stated that from now on he would only be dealing with ‘clean coins’ – coins mined using renewable energy – and suggested that other institutions were starting to do the same.
O’Leary focused on the free-spinning nature of Bitcoin manufacturing by pointing out that most of the other products in the world are manufactured to institutional and regulatory compliance standards. O’Leary said, during one interview with CNBC:
“We have compliance with major institutions, we have covenants about how assets are made, whether carbon is burned, whether there are human rights involved, whether it is made in China.”
Every example cited by O’Leary is one that applies to the world’s largest Bitcoin mining region – China, where cheap coal-fired electricity accounts for a estimated 50% -65% of the total bitcoin hash rate. Nobody wants to buy Bitcoin that originated in China, says O’Leary, who suggested that institutions were looking for “virgin” coins, which can be traced back to an ecologically ethical source.
“All these problems have now emerged on Bitcoin. Institutions will not buy coins mined in China; coins mined with coal to burn for electricity; coins mined in countries with sanctions. And suddenly there is a huge demand for new coins with known provenance, ”said O’Leary.
Ultimately, the zeitgeist will come to know two different types of Bitcoin: blood coins and clean coins, O’Leary said:
“This is a very interesting problem, and in the next two years I see two types of coins: blood coins from China and clean coins that are sustainably sourced in countries that use hydropower, not coal.”
O’Leary said concerned potential investors regularly asked him about the source of Bitcoin and whether its production was up to contemporary Western standards. The investor said he would only be dealing with clean Bitcoin from now on.