His comments were in line with Federal Reserve Chairman Jerome Powell, who mentioned that inflation was rising alongside supply problems: “As the economy continues to reopen and spending recovers, we are seeing upward pressure. on pricing, particularly due to supply bottlenecks in some sectors, “Powell said in prepared remarks. “These effects have been larger and longer-lasting than anticipated, but they will diminish and as they do, inflation is expected to fall back toward our long-term 2% target.”
Icahn mentioned having invested in cryptocurrencies during this year and while he did not encourage investment, he considered that it may be worth exploring in the universe of digital currencies. “We have a bunch 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 understand. […] The jury does not know if Bitcoin has intrinsic value or acts as a store of value. If inflation shoots up, I guess it does have value. There are so many variables, it is very difficult to invest, “said Ryan Adams, founder of cryptocurrency investment firm Mythos Capital and Bankless.
JP Morgan had expressed himself in the same vein at the beginning of the month. According to JP.Morgan, the rally in the price of Bitcoin is due to institutional investors choosing the cryptocurrency with the highest market capitalization as a safe haven asset against inflation instead of gold bars, as it was traditionally.
“The resurgence of inflation concern among investors has renewed interest in using Bitcoin as an inflation hedge,” the analysts said and expanded: “Institutional investors seem to be coming back to Bitcoin, perhaps seeing it as a better hedge against inflation than gold.”
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