dailyhodl.com
Billionaire Bill Ackman says that Bitcoin’s (BTC) potential could be limitless in the case of an economic collapse.
In a new thread on the social media platform X, the chief executive of hedge fund Pershing Square Capital Management says that the crypto king could create an endless loop that sees its price go up infinitely.
“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 goes to infinity, energy prices skyrocket, and the economy collapses.
Maybe I should buy some Bitcoin.”
Responding to Ackman, Michael Saylor, a longtime BTC proponent and the current executive chairman of software development firm MicroStrategy, says that while Ackman is right to want to accumulate BTC, he’s off target about its impact on the price of electricity.
“You should buy some Bitcoin, but not for the reasons cited above. Most Bitcoin miners are driving the cost of electricity down for other consumers, not up. Let me know if you would like to discuss one on one.”
Bitcoin is trading for $68,592 at time of writing, a 1.25% decrease during the last 24 hours.
In November 2022, Ackman flipped his stance on digital assets. Back then, the billionaire said that crypto’s ability to be used fraudulently initially made him question the general validity of the asset class.
However, he says that the decentralized wireless network Helium (HNT) made him realize that crypto assets can have intrinsic value.
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