- Carl Icahn is the latest investment legend to weigh in on bitcoin.
- He told CNBC it is similar to a bubble involving swamp land hugging the Mississippi River.
- The Mississippi Bubble was brought on by John Law, a Scottish adventurer, in the early 17th century.
Carl Icahn is the latest Wall Street legend to weigh in on bitcoin.
The cryptocurrency has gripped the attention of Main Street and Wall Street as it has zipped to incredible heights, soaring over $11,000 a coin on Wednesday.
Icahn falls among the many Wall Streeters who think the cryptocurrency is in a bubble. The billionaire, who admits to not know much about the technology of bitcoin, told CNBC it reminded him of an obscured bubble involving swampland 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,” Icahn said.
What was the Mississippi Bubble?
The Mississippi Bubble was brought on by John Law, a Scottish adventurer and economist, in the early 17th century. Law was granted the authority by the French government to open up a company to oversee the French’s territorial claims hugging the Mississippi River in the present day US. In order to fund the venture he issued paper shares to investors.
“The lure of gold and silver brought out many eager investors in the Mississippi Company,” wrote historian Jon Moen at the University of Mississippi.
As such, the value of the company’s share spiked as investors, enchanted by the idea of far-flung lands and riches, poured in. Here’s Moen (emphasis ours):
“The financial district in Paris became so agitated at times with investors that soldiers would be sent in at night to maintain order. Shares in the Read More Here