As cryptocurrencies gather momentum, major investors are increasingly showing interest in adding them to their investment portfolios.
Activist investor Carl Icahn has signalled he may enter the cryptocurrency market in a ‘big way’, considering investing more than US$ 1 billion.
In an interview with Bloomberg TV, Mr. Icahn rejected criticism of cryptocurrencies as having no underlying value and suggested the US dollar’s only value is because ‘you can use it to pay taxes’. According to Dynasty Global Investments AG’s co-founder and CEO, Eduardo Carvalho, “it is very positive to see a growing number of high profile investors like Carl Icahn looking to diversify their portfolio through the crypto market”.
"Although Mr. Icahn seemed less concerned about the underlying value of cryptocurrencies, “investors are likely to be more reassured with cryptocurrencies linked to other assets, such as the high value real estate that are at the core of ours”, added Mr. Carvalho."
In his Bloomberg interview, Carl Icahn also said that cryptocurrencies may be an attractive alternative especially given the way the equities markets are currently being traded at ‘ridiculous prices’.