Bitcoin, a hedge against inflation, believes billionaire

Bitcoin has several major supporters among the world’s great fortunes, including Carl Icahn. According to him, BTC offers a possible hedge against inflation.

Several factors currently explain the surge in Bitcoin price. Of course, the rumors around ETFs, then the SEC validation of the first of them, are the main driver.

But investors, including institutions, are also more inclined to acquire Bitcoin due to inflation. Concerns about rising prices globally are leading them to adopt BTC.

Crisis in sight: what to invest in?

And it is not billionaire Carl Ichan who will discourage them from following this investment strategy. In reaction to statements from Fed boss Jerome Powell, Icahn warns of a coming market crisis on the horizon.

“In the long term, we are definitely going to hit a wall. I really think there will be a crisis at the rate we’re going, the rate we’re printing money, the rate we’re going toward inflation, ”he told CNBC.

Despite this alarmist tone, the great American fortune suggests solutions. And for him, Bitcoin can currently offer a hedge against this risk. Not very surprising since Icahn said he wanted to invest several billion in crypto-assets in 2021.

On the other hand, it is a bad blow for gold. Bitcoin has once again cut corners – even though the gold market still largely dominates the BTC market. The price of gold has been falling since mid-August, on the contrary a key period for the value of cryptocurrencies.

Rampant inflation? Bitcoin is valuable

Traditional investors may choose to look to the equity market, however. Carl Ichan encourages them, however, to explore other alternatives as well, including crypto-assets.

But the billionaire is cautious however. He highlights the lingering doubts around BTC’s potential and its ability to act as a store of value. Corn “if inflation is rampant I guess it’s worth“, He suggests nonetheless.

His company is not yet ready to invest in cryptocurrency at this point, however. And the reason is simple: a lack of understanding about the asset and how it works.

“A lot of smart people work at Icahn & Company, and we don’t understand bitcoin. I’m not saying it’s bad or good, I’m just saying we don’t understand it. We are not going to invest in something that we do not understand ”, he explains.

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