Carl Icahn, a billionaire investor, warned Tuesday that there may be a new market crisis. Bitcoin could be the best way to hedge against it.
Icahn expressed concern that the dollar is losing value and that goods are becoming more expensive as the United States government continues to stimulate the economy.
“We are certain to reach the wall in the long-term. The way we are printing money and inflating prices, I believe there will be a crisis. You can see inflation everywhere you look, and I don’t know how to deal with it long-term,” Icahn stated Monday on CNBC.
He was in agreement with Jerome Powell, Chairman of the Federal Reserve, who stated that inflation was increasing along with supply problems.
Powell stated in prepared remarks that “As the economy continues its reopening and spending recovers, we are seeing upward pressures on prices, especially due to supply shortages in certain sectors.” These effects were more severe and lasting than expected, but they will subside and inflation is expected to fall back towards our longer-term goal of 2%.
Icahn said he had invested billions in cryptocurrency this year but has yet to add a position in the market, at least not publicly. Ryan Adams, the founder of Mythos Capital and Bankless crypto investment firm, speculated that Icahn might have a position.
The billionaire believes that there is an alternative to investing on the stock market. Cryptocurrencies may be worth investigating.
“We have a lot smart people at Icahn & Company and we don’t understand Bitcoin. It’s not bad or good. I just don’t get it. We won’t invest in something that doesn’t have […]. The jury is still out as to whether bitcoin has an intrinsic value or acts like a store of value. If inflation becomes rampant, then I suppose it has value. It is very difficult to invest in because of so many variables.
Eileen Wilson –Technology and Energy
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