Billionaire investor Carl Icahn, says Bitcoin could be the best hedge against inflation, his comments were in line with Federal Reserve Chairman Jerome Powell, who mentioned that inflation was rising along with supply issues.
With the US government continuing to support the economy, Icahn expressed concern that the currency will continue to depreciate and that the cost of commodities will rise.
“In the long run, we’re going to strike a brick wall.” The way we’re going, the way we’re producing money, the way we’re moving into inflation, I believe there will be a crisis.
If you look around, you’ll notice inflation everywhere, and I’m not sure how you’ll deal with it in the long run.” On Monday, Icahn spoke with CNBC.
His remarks echoed those of Federal Reserve Chairman Jerome Powell, who stated that inflation was rising in tandem with supply constraints:
“We are seeing upward pressure on prices as the economy starts to expand and expenditure rebounds, particularly due to supply bottlenecks in some industries,” Powell said in prepared remarks. “These effects have been stronger and longer-lasting than predicted, but they will fade, and inflation will fall back toward our longer-term target of 2%.”
This year, Icahn proposed investing billions in cryptocurrencies, but he has yet to take a position in the market – at least not publicly. Icahn may have an interest, according to Ryan Adams, founder of crypto investment firm Mythos Capital and Bankless.
The billionaire still feels there is an alternative to stock market trading, and cryptocurrencies are worth investigating:
“We got a lot of smart guys working at Icahn & Company, and we just don’t understand bitcoin. I’m not saying it’s bad or good, I’m just saying we don’t understand it. We’re not going to invest in something we don’t get […] The jury is really out on whether bitcoin has intrinsic value or acts as a store of value. If inflation gets rampant, I guess it does have value. There are so many variables, it is a very difficult thing to invest in.”