Legendary American businessman Carl Icahn has apparently changed his stance on cryptocurrencies. In an interview for Bloomberg Markets’, Icahn hinted at a potential investment of up to $ 1.5 billion in the sector.
Thus, Carl Icahn shares the position of Stanley Druckenmiller, Paul Tudor Jones and more recently Ray Dalio on this new asset class. Icahn believes the rise of cryptocurrencies is a “natural manifestation” of the current macroeconomic outlook and its inflation.
In these economic circumstances, investors are looking for new stores of value outside of the US dollar. Much like Dalio, Icahn fears the dollar is heading for depreciation and potentially it could lose its current reserve status if the Federal Reserve “continues to print money.”
Carl Icahn has claimed he is “not yet an investor” but disagrees with criticisms of these assets and finds as much value in a cryptocurrency as in the US dollar. He said, “The only dollar is really because you can use it to pay taxes.”
Carl Icahn: Bitcoin and Ethereum are here to stay
Asked about the specific use cases between Bitcoin, “commonly” seen as the store of value, and Ethereum, the decentralized applications ecosystem, Carl Icahn seemed knowledgeable.
The legendary investor was able to provide a unique perspective often overlooked by someone in traditional finance. He said:
Ethereum is the underlying blockchain. So, Ethereum has two things that you can use as a payment system, you can use the store of value. So you need Ethereum, the blockchain, to make sure you have something. You’ve never had this before where you can buy cryptocurrency and you can say ‘I’m safe’ because you have the blockchain which makes it very safe for you. I oversimplify.
Icahn believes this is what gives cryptocurrencies, such as Bitcoin and Ethereum, “great value.” However, he added that the two main cryptocurrencies are “different”. While Bitcoin is “just a store of value,” Ethereum is “a kind of value-added business.”
Although he pointed out that calling it a business was not accurate. When asked if he was looking to invest specifically in one of these two cryptocurrencies, he replied, “I’m looking at the whole business and how I could get involved in a relatively large way.”
Carl Icahn later said cryptocurrencies were here to stay and clarified that going into a business in a “big” way could lead to an investment of $ 1 billion, $ 1.5 billion or more. He seemed more bullish on Ethereum and, lastly, said that all cryptocurrencies were unlikely to survive.
This has led many to speculate that Icahn is already a crypto investor. Anonymous MacroScope Analyst mentionned the following on this possibility:
Two things based on decades of watching Icahn:
You will hear more when he’s got a full stance… a lot more (and very loudly), and that stance will indeed be a full stance. Don’t underestimate the impact this has on former PMs / traders, especially in New York City where Icahn is revered.
Ethereum is trading at $ 2,799 with 11.8% profit on the weekly chart and 4.8% profit on the daily chart. The monthly chart has a profit of 10.6% and appears to have enough conviction to attempt to push towards the $ 3,000 mark. A successful breakthrough in this area could determine the fate of ETH price action in the near term.