Billionaire investor Carl Icahn believes that bitcoin’s potential will be realized in the coming future if the Fed continues to print excessive amounts of money.
Carl Icahn Thinks Bitcoin Could Become More Powerful
Ever since the coronavirus pandemic began, governments around the world – including the United States – have been issuing trillions of dollars in stimulus money to both individuals and businesses alike. While we can all agree that a little extra cash in our pockets here and there is a good thing, it’s not always great when it places the global economy in harm’s way, and according to many analysts, this is exactly what’s happened.
The constant delivery of stimulus funds has led to inflation, supply chain disasters, and many other issues that economies around the world are now dealing with in spades. In the U.S., for example, the Fed continues to print money as though it grows on trees. The trouble is that money doesn’t come about in this way, and the more money is printed, the more worthless it becomes and the more debt the country ensues.
For this reason, bitcoin has taken on new form over the past year and a half. It used to be that traders simply viewed bitcoin in a speculative light. It was a great tool for getting rich if one played their cards correctly. However, since the pandemic began and printing has gotten out of control, many now view bitcoin and other forms of crypto as hedge tools; items that can potentially keep one’s wealth secure during times of economic strife.
This is likely what has led bitcoin to hit the $60,000 mark not once, but twice in a single year. Icahn explained that the stock market is likely to experience a heavy crisis in the coming months and that inflation is only going to get worse if the U.S. continues with its present path. In an interview, he says:
In the long run, we are certainly going to hit the wall. I really think there will be a crisis the way we are going, the way we’re printing money, the way we are going into inflation. If you look around you, you see inflation all around you, and I don’t know how you deal with that in the long term.
What Will the U.S. Do?
Icahn is confident that bitcoin can reign supreme if price hikes on goods and services get any worse. The trouble, however, is that the United States possesses just as much power as China to step in and stop bitcoin in its tracks if it so chooses, and he’s concerned that this could occur. He mentions:
If inflation gets rampant, I guess [bitcoin] does have value, but will inflation get rampant? Or will the government come in as they did in China and stop the thing?