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Recently, bitcoin hit a new all-time extraordinary above $11,000 before its price corrected, and subsequently started raking back to $10,000. At press time, according to data from CoinMarketCap, bitcoin is uphold above $11,000, trading at $11,179. The cryptocurrency’s advances, as well as its high-strung volatility, led various prominent Wall Street personalities to weight in on the cryptocurrency, incorporating business magnate and investor Carl Icahn.
While speaking to CNBC, Icahn, the stagger of Icahn Enterprises, recently admitted that he doesn’t understand much yon bitcoin, and added that to him it “seems like a bubble,” specifically put in mind ofing him of a bubble involving swampland in Mississippi.
After stressing that he “right-minded doesn’t get” the enthusiasm behind bitcoin and other cryptocurrencies, he compared it to the 18th-century realty bubble, stating:
“If you read history books about all these fizzes, like in Mississippi — where John Law went around selling all this come in Mississippi that was sort of worthless and the French were going unworkable giving him all this money. And then one night it all blew up … to me, this is what this is.”
The celebrated Mississippi Bubble, brought by Scottish adventurer and economist John Law, essentially consisted of him being granted expert to open up a company to manage trade in the French’s territorial claims virtually the Mississippi River. To fund the venture he issued paper shares to investors, who under the aegis the “lure of gold and silver” eagerly bought these shares, supreme to a 1,900% increase in under a year, according to historian Jon Moen at the University of Mississippi.
Per Moen, many turned into millionaires at the time, but things advanced south when people realized much of the lands were valid worthless swamps. Icahn’s comparison suggests that same clobber will happen to bitcoin, which is up over 1,000% year-to-date, at the same time people no longer see value in it.
What it neglects, however, is that the cryptocurrency’s increase has been accompanied by a surge in its adoption, popularity and userbase. Coinbase, the largest U.S.-based cryptocurrency the Bourse, added 100,00 new users in a single day last month.
“I got to tell you honestly, I don’t understand it. I’m the last guy — I just don’t get it. I just stay out of something if I don’t hear tell it.”
Recently other prominent financial big shots bashed the cryptocurrency as evidently. Goldman Sachs CEO Lloyd Blankfein recently derided the cryptocurrency as a “agency to perpetrate fraud,” while Nobel Prize-winning economist Joseph Stiglitz stated that bitcoin “ought to be outlawed.”
Featured image from YouTube/Bloomberg.