American billionaire investor Carl Icahn, the founder of Icahn Enterprises, said in an interview today with Bloomberg that cryptocurrencies might be here to stay, given the high rate of inflation in the country.
Icahn stated that although not all cryptocurrencies will stand the test of time, some will still be in existence; as citizens continue to express concern about the value of the United States Dollar (USD), which has decreased tremendously due to the enormous supply of the currency in the market.
The 83-year old veteran investor noted that concerns about the value of the USD will continue to increase as inflation levels in the country rise.
COVID-19 Relief Funds Causing Inflation In The U.S.
Since the beginning of the coronavirus (COVID-19) pandemic, the United States government has made significant efforts to reduce the impact of the virus on its citizens.
Part of the measures includes distributing relief funds to U.S. citizens to mitigate the impact of the virus on the country.
While this step is commendable to a large extent, it has caused the level of inflation in the country to reach new heights, as several people move to save themselves from the looming economic crisis.
Massive Adoption of Crypto as Hedge Against Inflation
In recent times, cryptocurrency has been tipped as a hedge against inflation, with the number of investors including retail and institutional investors that are currently in the market corroborating this assertion.
Groundbreaking purchases have been made by large firms, including MicroStrategy. popular American car manufacturer Tesla, and a host of others.
The firms joined the Bitcoin bandwagon due to hyperinflation in the United States, and hope to convert the majority of their cash reserves to the asset class.
Icahn Enterprises Studying Cryptocurrencies
According to Icahn, while Icahn Enterprises is yet to follow the path of other firms to buy cryptocurrencies, he disclosed that the firm is studying whether to get involved in cryptocurrency.
“To be clear, we have never bought any cryptocurrency, but we are studying it,” Icahn said.
Icahn further predicts that current inflation in the U.S. will cause interest rates to soar, as well as a major correction in the foreign exchange market.