coinculture.com
Bill Ackman, founder and CEO of Pershing Square Capital Management, diverted some of his attention to Bitcoin (BTC) on Saturday, playfully suggesting a scenario in which the price of the world’s largest cryptocurrency could skyrocket beyond expectations.
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In a post on X, Ackman remarked, “Bitcoin price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy and the cycle continues.”
He continued, “Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses,” he continued. “Maybe I should buy some Bitcoin.”
Ackman later acknowledged, “The problem of course is that it also works in reverse.”
A scenario:
Bitcoin price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy and the cycle continues.
Bitcoin… https://t.co/a5LzX69R7q
— Bill Ackman (@BillAckman) March 9, 2024
Not surprisingly, Ackman’s post prompted swift reactions from various members of the Bitcoin community, including Michael Saylor, founder and Executive Chairman of MicroStrategy (MSTR), who offered to engage with Ackman directly on the topic.
“You should buy some bitcoin, but not for the reasons cited above,” said Saylor. “Most bitcoin miners are driving the cost of electricity down for other consumers, not up. Let me know if you would like to discuss 1 on 1.”
Ackman has largely steered clear of Bitcoin and the broader cryptocurrency realm, although he mentioned in 2022 that he was a minor investor in certain crypto projects and venture funds. “I invest more as a hobbyist trying to learn than as a careful investor,” he noted at the time.