Bill Ackman, founder and CEO of Pershing Square Capital Management, shifted focus to Bitcoin (BTC) on Saturday afternoon, playfully proposing a scenario where the price of the world’s largest cryptocurrency could surge to unexpected heights.
“Bitcoin’s price surge prompts more mining activity and higher energy consumption, pushing up energy costs, leading to inflation and a drop in the value of the dollar, which boosts demand for Bitcoin and further increases mining activity. This, in turn, spurs demand for energy, perpetuating the cycle,” Ackman explained in a post on X.
“Bitcoin reaches infinity, energy costs soar, and the economy crumbles,” he elaborated. “Perhaps I should consider purchasing some Bitcoin.” “However, the downside is that it operates in reverse as well,” he later remarked.
A scenario:
— Bill Ackman (@BillAckman) March 9, 2024
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
Unsurprisingly, Ackman’s post prompted swift responses from many in the Bitcoin community, including MicroStrategy (MSTR) founder and Executive Chairman Michael Saylor, who offered to engage in a direct conversation with Ackman on the matter.
Saylor remarked, “You should consider investing in bitcoin, but not solely based on the reasons mentioned above. In fact, most bitcoin miners are actually driving down the cost of electricity for other consumers, not increasing it. Feel free to reach out if you’d like to discuss this further one-on-one.”
Ackman has largely avoided involvement with bitcoin and cryptocurrency in general. However, in 2022, he mentioned being a minor investor in certain crypto projects and venture funds. “My investments are more of a hobbyist endeavor aimed at learning rather than strategic investment,” he stated at the time.