In a new interview on CNBC, Tycoon billionaire investor Carl Icahn put his two cents into the Bitcoin debate, going on the record to say Bitcoin “seems like a bubble.”
Reassuring for crypto enthusiasts, though, is the fact that Icahn isn’t speaking from a vantage of meticulous analysis. The billionaire noted he hasn’t done his homework on the #1 crypto:
“I got to tell you honestly, I don’t understand [Bitcoin] … I just don’t get it. I just stay out of something if I don’t understand it.”
But this lack of understanding didn’t stop Icahn from linking the Bitcoin boom to one of the more infamous speculative bubbles of the past — the Mississippi land bubble:
“If you read history books about all these bubbles, like in Mississippi — where John Law went around selling all this land in Mississippi that was sort of worthless and the French were going crazy giving him all this money. And then one night it all blew up … to me, this is what this is.”
— Business Insider (@businessinsider) November 30, 2017
Indeed, though, there are many who disagree with this line of thinking. CryptoAnalyst has already covered one economics professor who disagrees entirely with all the “bubble” talk around BTC.
That would be Troy University Prof. of Economics Malavika Nair, who recently asserted that “whatever [Bitcoin] is, it’s definitely not a bubble.”
That’s because Nair notes the speculative bubbles of yesteryear — like Icahn’s reference to the Mississippi land bubble, for example — have burst at their peaks, like a firework explosion
Bitcoin, on the other hand, has had one peak after another and has routinely come out stronger after price retracements. That’s certainly not how a firework explodes, is it?
It looks like Icahn will have to go back to the drawing board for now, then. The economic models of the past may be totally inadequate for understanding the ongoing and obviously unprecedented crypto revolution.
TLDR: Carl Icahn, the famous founder of Icahn Enterprises, is now joining BTC’s bandwagon of naysayers. He’s the latest talking head to call Bitcoin a bubble.