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Billionaire Carl Icahn is considering investing up to $1.5 billion in cryptocurrencies, despite the fact that “much of the cryptocurrency issued today will not survive.”
Carl Icahn, the founder of Icahn Enterprises and a former crypto sceptic, told Bloomberg that he plans to enter the crypto sector in a “big way,” hinting a $1.5 billion investment.
According to Forbes, Icahn is a billionaire investor and former Trump government advisor with a nett worth of $15.6 billion. Icahn told CNBC in 2018 that cryptocurrency is “ridiculous” and that “maybe I’m too old for them, but I wouldn’t touch that stuff.”
But speaking on May 26, Icahn explained he’s now considering a large investment and that entering the market in such a manner would “not be to buy a few coins or something”:
“I mean, a big way for us would be a billion dollars, billion-and-a-half dollars … I’m not going to say exactly.”
Icahn joins a growing list of fellow billionaires who have changed their tune over crypto in the past 12 months. When asked about what cryptocurrencies he has his eyes on, the billionaire kept his cards close to his chest and emphasized that:
“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 believes that cryptocurrencies that do not function as a store of value will be phased out of the market because “there has to be some form of safety of value there” in order to thrive.
Icahn Enterprises, a $14.5 billion American company, owns CVR, Pep Boys, and Trump Entertainment Resorts.
— Michael Saylor (@michael_saylor) May 26, 2021
Ryan Adams, Ether proponent and founder of crypto investment firm Mythos Capital and Bankless, speculated on Twitter that Icahn’s recent kite flying in the media, may indicate he has already entered the market:
“If Carl Icahn hasn’t already bought a billion dollars worth of ETH and BTC why would he announce he’s about to buy a billion dollars worth of ETH and BTC.”
According to Bloomberg, the billionaire has elaborated on his views on crypto, stating that pessimism about the worth of crypto is now “a little wrong-headed,” as he doubts the fundamental worth of the US dollar in compared to crypto, which may be a store of wealth and a hedge against inflation.
Well, what’s the value of a dollar? The only value of the dollar really, is because you can use it to pay taxes.”
When asked, “What is your use case?” Ichan replied, “What is your use case?” In terms of cryptocurrency, the 85-year-old mentioned the Ethereum network, stating that “with Ethereum, it’s the underlying blockchain.” So Ethereum has two functions: it can be used as a payment system and it can be used as a store of wealth.
“Bitcoin to me is just a store of value,” he added.