Shark Tank's Kevin O'Leary makes bold prediction on U.S. economy

Retirement savings accounts have long provided conventional investment opportunities, but some financial institutions are now broadening their offerings. 

Traditionally, accounts such as IRAs (Individual Retirement Accounts) have focused on assets such as stocks, ETFs, and bonds. However, some providers are beginning to incorporate higher-risk investments, including precious metals such as gold bullion and other alternative assets.

Kevin O’Leary, prominent entrepreneur and investor on ABC’s Shark Tank, makes a bold prediction about one asset class increasingly being considered for IRAs that he believes has a promising future in the U.S. economy. 

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A growing trend involves one relatively risky asset that is becoming a more common option for people to consider in their IRAs: cryptocurrency.

People who have a positive view on crypto’s future potential are understandably excited about the possibility of adding the asset to their IRAs. But a healthy conversation is taking place about whether it’s a good idea hold crypto in retirement savings accounts. 

Related: Shark Tank’s Kevin O’Leary sends strong message on Social Security

Cryptocurrency is highly volatile and more vulnerable to market manipulation than traditional securities, according to Fidelity Investments. Crypto holders do not receive the same regulatory protections as registered securities, and the future regulatory landscape remains uncertain.

Despite this, some investors find cryptocurrency appealing for retirement accounts due to potential tax benefits. 

Roth IRAs, for example, allow tax-free growth and qualified withdrawals, which could help investors keep more of their gains if crypto values rise.

As a relatively new asset class, crypto has a short history. While some believe it will revolutionize finance, others think it may become worthless. 

Adding bitcoin, for example, to a portfolio has at times improved returns, yet even small allocations have significantly increased volatility. Bitcoin lost more than 75% in 2022’s bear market, according to Fidelity’s reasearch.

Because IRAs are intended for retirement savings, Fidelity advises investors to consider whether they can tolerate the risks, including the possibility of crypto collapsing entirely.

O’Leary, often referred to as “Mr. Wonderful,” has a positive view of crypto’s potential in the coming years. 

Shark Tank’s Kevin O’Leary has a major prediction for crypto in the next five years

O’Leary is bullish on digital assets and is an advocate of clear regulation for cryptocurrency that he believes will open the door for major gains. He offers a big endorsement for its future prospects.

“I consider crypto to be the 12th sector of the economy within five years,” he recently said, according to CoinDesk. 

The sectors generally considered to be among the current 11 making up the U.S. economy are: agriculture, manufacturing, construction, retail, finance, health care, information technology and communications, transportation and warehousing, energy, tourism and government.

Institutional adoption of cryptocurrency depends on clear regulation and compliance measures, O’Leary told CoinDesk. Large investment funds are unable to participate until their internal systems can properly integrate digital assets alongside traditional investments such as equities and bonds. 

More on retirement:

• Dave Ramsey sends strong message to Americans on 401(k)s
• Shark Tank’s Kevin O’Leary warns Americans on Social Security
• Scott Galloway sounds the alarm on Social Security, boomers

O’Leary believes that immense amounts of capital remain on the sidelines, unable to enter the market until regulatory frameworks and compliance infrastructure are established.

This is why he remains optimistic about upcoming stablecoin legislation in the U.S., which O’Leary anticipates will be enacted soon.

Related: Dave Ramsey sends strong message to Americans on 401(k)s

More traditional 401(k) plans and IRAs remain commonly used

Despite the rising interest in cryptocurrency as an investment asset, traditional allocations in 401(k)s and IRAs, including Roth IRAs, continue to be used far more commonly. 

Participating in a 401(k) plan through an employer is a solid way to save for retirement, especially when employer matching is available. Automatic paycheck deductions make it effortless to maintain consistent contributions.

The 401(k) contribution limit has increased to $23,500 in 2025, up from $23,000 in 2024. Workers aged 60 to 63 can now contribute up to $11,250, while those 50 to 59 can add $7,500.

IRAs provide access to investments beyond typical 401(k) options, making them appealing to some investors. However, IRAs require individuals to set up accounts and manage contributions themselves, which can be overlooked.

In 2025, the IRA contribution cap remains $7,000, with an additional $1,000 catch-up limit for those 50 and older. 

Related: Veteran fund manager unveils eye-popping S&P 500 forecast

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