A well-known American investor, the "_Shark Tank_" celebrity Kevin O, stated that stablecoins are the safest assets in the crypto sector. He explained that compared to Bitcoin (BTC) and other cryptocurrencies, stablecoins carry much lower risks, as they are subject to clearer regulations and are also backed by the US Treasury Department.
Three types of crypto assets
This investor, known as “Mr . Wonderful”, recently posted on X, categorizing crypto assets into three types based on volatility, regulatory status, and adoption prospects.
O' Leary pointed out: "Everyone knows that cryptocurrencies are very volatile, but there is more than one type of cryptocurrency."
This Canadian billionaire believes that the crypto asset with the lowest volatility at present is stablecoins.
"You would call stablecoins the safest assets at present," he said referring to the "GENIUS Act" legislation, which establishes a federal regulatory framework for payment-type stablecoins in the United States.
"It's essentially a digital currency," said O' Leary.
GENIUS Act will come into effect in July 2025, requiring stablecoin issuers subject to this legislation to maintain reserves composed of qualified liquid assets.
However, although stablecoins are theoretically supposed to maintain a relatively stable price, they are not completely risk-free. In addition, the security of stablecoins also depends on the quality of their reserves, the issuer, and the redemption terms.
Bitcoin is a speculative asset.
O' Leary classifies Bitcoin as a separate category, indicating that the volatility of this leading cryptocurrency is much higher than that of other assets.
"Bitcoin is of course more risky and more volatile," he said.
He emphasized that Bitcoin remains a speculative asset and pointed out that, due to regulatory concerns, the adoption of this top cryptocurrency by institutions is still hindered—at least for now.
This investor mentioned the CLARITY Act which has not yet become law.
In September of this year, the bill failed to pass in the Senate, suffering a major setback.
When talking about Ethereum ( ETH ) and other blockchain tokens, O' Leary compared blockchain technology to enterprise software and emphasized that the adoption rate is of paramount importance.
