Mike “Rooster” McConaughey, investor and elder brother of Hollywood star Matthew, says he has trouble understanding bitcoin — which he likened to “trading underwear”. Cryptocurrency riches will go to whoever sells their holdings for cash first, he said.
McConaughey and Wayne Butch Gilliam, his business partner, are self-made millionaires and TV hosts who are about to launch a reality show called “Rooster & Butch”, where they grill and (hopefully) venture-fund promising new entrepreneurs.
In an interview with Polina Marinova, associate editor at Fortune, McConaughey shared his thoughts on cryptocurrency and its underpinning blockchain technology. Despite an unconventional approach, the investor has a knack for making money — earned mainly from his Texas-based oil business.
During the interview, when asked about his views on digital currency and blockchain, he said: “Bitcoin — I can’t figure out how to get in or get out! Do you know about it?” He was cognizant that “It’s cyber money!”, but agreed it remained an unsolved puzzle for him.
When asked if you he has invested any money into cryptos, he replied, “No, but a guy told me to buy it when it was $600”. Bitcoin hit the $600 USD mark in late 2013. If McConaughey had invested $1 million in BTC around that time, it would equate to about $24.5 million at the current price.
Despite his unconventional approach, the self-made millionaire is still more of a traditional investor in that he opposes the idea of getting rich overnight.
McConaughey, famous for his business acumen as well as being Matthew McConaughey’s brother, said he prefers gradual and consistent growth — something common among traditional investors. On the contrary, the booming pace at which bitcoin rose over the past 12 months does not seem to interest the investor.
We should note that many bitcoin investors did not foresee their holdings to make them rich overnight either — but the cryptocurrency has gained that reputation through a series of sudden price surges at times in its history.
When the interviewer mentioned that Bitcoins current is $14,000, McConaughey instantly countered “Well, what backs it ?”. The interviewer responded that the value of Bitcoin is what another person is willing to pay, hence… nothing does.
In response, McConaughey said: “Nothing backs it — it’s like trading underwear. Whoever cashes in first is going to have the money. If everyone’s to cash in and you don’t get to the bank too quick, you’re gonna have nothing. I mean, we’re probably wrong on this one, but I just can’t figure it out.”
Billionaire investor Warren Buffet recently echoed McConaughey’s sentiment, predicting an unfortunate end for the crypto space. “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” he recently told CNBC.
The TV show “Rooster & Butch” promises to stress test entrepreneurs before investing in their businesses. In the past, the duo also hosted the “West Texas Investors Club” that aired on CNBC. As for Gilliam, he reportedly believes the tech space to be interesting, and offers a great investment opportunity.
Is it time for traditional investors to move to modern investment prospects? Or are they right? Let us know your thoughts.
Images via West Texas Ltd., Pixabay