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Billionaire Carl Icahn on Bitcoin: ‘Seems Like a Bubble’

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Dec. 8 2017, Updated 1:20 p.m. ET

Carl Icahn on bitcoin

Billionaire investor Carl Icahn shared his view on cryptocurrency in his November 30, 2017, interview with CNBC’s Halftime Report. He said about bitcoin that it “seems like a bubble.” He added, “I just don’t get it.”

Bitcoin has shown a dramatic rally in the past year, rising 1,760%. On December 7, 2017, it hit a high of $16,858 and then pulled back somewhat.

Many legendary investors, including James Gorman and Jamie Dimon, aren’t positive about bitcoin’s performance. Gorman said cryptocurrency “doesn’t quite deserve the attention it’s getting.” Dimon thinks bitcoin is a fraud. But in spite of criticism from market leaders, bitcoin is continuing its strong rally, and many retail investors and institutional investors are putting their money into the asset.

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The growing acceptance for bitcoin among various investors seems to be supporting its movement. Since 1970, investors have been attracted to gold (GLD) as a safe-haven asset. When international turmoil arises, gold outperforms other asset classes and demand increases (SPY) (SPX-INDEX) (VGK). But cryptocurrency is beating the performance of gold. It generally shows that the risk level in this asset class is very high, moving much like a bubble. A bubble in the asset class could be risky for the economy (QQQ).

You may be interested in reading S&P 500 Index at New Highs: Will Bulls Push It Higher?

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