Billionaire investor Carl Icahn, in an interview with Bloomberg on Wednesday, spoke about his interest in cryptocurrencies and admitted that he could enter the market “on a large scale” by investing over $ 1 billion.
Icahn said that he has not bought cryptocurrencies yet, but is studying Bitcoin, Ethereum and the cryptocurrency sector in general in search of opportunities. Alternative currencies, he said, are gaining popularity as a natural consequence of inflation in the economy. Criticizing cryptocurrencies for lacking intrinsic value is “kind of devoid of logic,” he added.
“What is the value of the dollar? The dollar is only valued because it can be taxed, Icahn said. – I look at the whole business and how I can participate in it through Icahn Enterprises on a relatively large scale. I am not looking at what needs to be bought at the moment. ”
Comparing Bitcoin and Ethereum, he noted that the latter can act as a payment system and store of value, while Bitcoin’s capabilities are limited as a store of value. At the same time, cryptocurrencies that are unable to perform the function of a store of value will be forced to leave the market, since they will not be able to ensure the reliability of investments, he said.
“Many cryptocurrencies issued today will not survive, but we believe that cryptocurrencies can remain in one form or another. To be understood correctly, we have never bought cryptocurrencies, but we study them, ”said Icahn.
When asked what he means by big, the billionaire said:
“Big for us is not buying a few coins or something like that. I don’t believe in market trading. On a large scale for us, it is a billion dollars, a billion and a half, something on this scale. I think it will be big for us. But sometimes we invest more, sometimes – much less, so I will not say for sure. ”
Icahn believes that among other things, interest in cryptocurrencies is due to the “ridiculous prices” in the stock market. He emphasized that he was talking not only about memorials, but in general about the proposed management strategies.
“I don’t think the guys on Reddit and Robinhood are necessarily bad. I think they serve their purpose. The money goes back to the company. Some of these companies may be normal, but many are absurd in terms of the risk reward, ”he said.
According to Forbes, 85-year-old Icahn, who served as an adviser to the Donald Trump administration, is worth $ 15.6 billion. In 2018, in a conversation with CNBC, he called cryptocurrencies “ridiculous” and admitted that he might be too old for them.