Shark tank and Dragon cave Personality Kevin O’Leary takes a stand against what he calls a “blood coin”, namely Bitcoin (BTC), which was mined in China. The investor said that from now on he would only deal with “clean coins” – coins mined using renewable energies – and suggested that other institutions start doing the same.
O’Leary targeted the free-wheeling nature of Bitcoin production by pointing out that most other products in the world are manufactured to institutional and regulatory compliance standards. O’Leary said during an interview with CNBC:
“We have compliance with big institutions, we have agreements on how assets are made, whether carbon is burned, whether it’s human rights, whether it’s made in China.”
Each example given by O’Leary is for the world’s largest bitcoin mining region – China, where cheap coal-fueled electricity accounts for an estimated 50% to 65% of the total bitcoin hash rate. Nobody wants to buy bitcoin that originated in China, says O’Leary, who suggested that institutions started looking for “virgin” coins that can be traced back to an environmentally ethical source.
“All of these problems have now come to the fore with Bitcoin. Institutions will not buy coins mined in China; Coin that was mined with coal to burn the electricity; Coin mined in countries with sanctions. And suddenly there is this enormous demand for virgin coins with known origins, ”said O’Leary.
At some point the zeitgeist will get to know two different types of Bitcoin: blood coin and clean coin, O’Leary said:
“This is a really interesting problem, and I see two types of coins in the next year or two: blood coins from China and clean coins that are sustainably mined 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 met contemporary Western standards. The investor said that from now on he would only have to do with clean Bitcoin.