- Billionaire Bill Ackman considers Bitcoin investment amid a scenario predicting economic collapse from BTC’s surge.
- Crypto community challenges Ackman’s theory, citing flaws in logic about mining, electricity costs, and stranded energy use.
- Responses from industry figures like Michael Saylor and Pierre Rochard invite discussion.
Billionaire investor Bill Ackman, CEO of Pershing Square Capital, has stirred the crypto community by revealing his contemplation of investing in Bitcoin. Ackman outlined a scenario where a surge in Bitcoin’s price, driven by increased demand and energy usage, could lead to a chain reactions. It includes, rising energy costs, inflation, a weakening dollar, and heightened BTC demand.
In fact, he theorized that such a cycle might ultimately result in economic collapse, prompting him to consider Bitcoin as an investment option.
Ackman’s Bitcoin Scenario: A Potential Economic Domino Effect
Bill Ackman acknowledged the potential flip side of his scenario, stating,
“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.”
Community Response: Crypto Figures Counter Ackman’s Logic
Prominent figures within the cryptocurrency market have challenged Ackman’s logic. Alexander Leishman, CEO of River, highlighted the competitive nature of mining and its tendency to drive miners towards more remote and stranded forms of energy. Overall, it is ultimately contradicting Ackman’s view on energy costs.
MicroStrategy CEO Michael Saylor encouraged Ackman to consider Bitcoin investment but disagreed with the rationale. Saylor pointed out that Bitcoin miners often reduce electricity costs for consumers and extended an invitation for a one-on-one discussion.
Accordingly, Pierre Rochard, Riot Platforms’ VP of Research, invited Ackman to explore the economics of Bitcoin mining. It is emphasizing intricate feedback loops and limitations on Bitcoin’s purchasing power.
“The logic breaks down at the greater energy use=> drives up the price of energy. Bitcoin mining is a user par excellence of stranded/wasted energy, with ERCOT’s CEO crediting it for keeping power prices low,”
Daniel Batten
Environmentalist and venture investor Daniel Batten also joined the critique, pointing out flaws in Ackman’s logic about BTC mining and highlighting Bitcoin’s utilization of stranded/wasted energy.
As Ackman, traditionally uninvolved in cryptocurrency, contemplates a potential entry into the Bitcoin market. The crypto community remains engaged in a nuanced discussion, correcting misconceptions and providing insights into the intricacies of the industry.
No Comment! Be the first one.