In an interview with Bloomberg the famous businessman and investor, Carl Icahn, said that he believes investors are concerned about inflation and that cryptocurrency is here to stay.
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Regarding inflation, Icahn said that investors are growing concerned about the number of dollars flowing into the system and the potential for higher inflation.
“A natural manifestation of the tremendous amount of dollars flooding our economic system is that investors start to get concerned about the value of our currency, and this concern will increase if higher inflation continues,” said Icahn.
He continued, saying that the result of such inflation is the creation of cryptocurrencies and their use as a store of value.
“As a result of this (inflation), a phenomenon such as cryptocurrency exists. Much of the cryptocurrency issued today will not survive, but we believe cryptocurrency in one form or another might be here to stay. To be clear, we have never bought any cryptocurrency, but we are studying it.”
Icahn had other comments on the general economy in the post-pandemic world. He said that he thought the U.S. was trending toward a more environmentally friendly economy, which could benefit existing refineries, should they transition to renewables.
“American voters, as well as most of our government, seem to have made the decision that we must lower the amount of carbon in our atmosphere as quickly as possible. I believe as we move away from fossil fuels to renewables, certain refineries might — counterintuitively — benefit from this transition. They have the unique ability to do this transition and produce renewables at a far cheaper cost.”
He also noted that inflation already exists and that it could lead to higher interest rates or even a correction in the market.
“I do believe that inflation already exists which will eventually cause higher interest rates and a major correction in the market. But when it occurs and how severe it will be is a question that is impossible to answer at this time.”