Bill Ackman may be thinking about purchasing Bitcoin.
Michael Saylor argued that Ackman’s justifications were incorrect.
Bitcoin and the turbulent state of the economy are still hot topics of discussion.
Bill Ackman, a millionaire investor and renowned short trader, is generating a lot of talk on crypto X with his recently disclosed plans to purchase Bitcoin (BTC).
The Story of Bitcoin Mining and Bill Ackman
Bill Ackman initiated the Bitcoin discourse by immediately replying to a post made by an X user going by the handle @thechek_Fin. The post explained how the recent surge in the price of cryptocurrency over the last week resulted in miners consuming a significant amount of energy.
Ackman responded to the post by outlining a scenario in which the rise in Bitcoin’s price will encourage more mining, which will, in turn, require more electricity. This will raise the cost of energy, which might ultimately result in a spike in inflation and a decline in the value of the US dollar.
Bill Ackman said that as Bitcoin proponents usually allude to adopting BTC on the depreciated Dollar, there would be an increase in demand for the leading digital currency, which will, in turn, drive up the need for more mining and energy.
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
According to Ackman, the cycle is set to continue, driving energy prices through the roof, Bitcoin to infinity, and, ultimately, the economy’s collapse. He concluded by speculating about this situation and suggesting he “should buy some Bitcoin.”
Bill Ackman, a short seller, takes a more nuanced approach to Bitcoin compared to outspoken critics like Jim Cramer and Peter Schiff. However, this recent example underscores his concern regarding Bitcoin’s potential role in a potential U.S. economic collapse.
The Sector Responds
Industry participants have responded in droves to Bill Ackman’s story, attempting to refute the seemingly incriminating comparison of Bitcoin mining. Prominent supporters of Bitcoin offered to have one-on-one conversations with Bill Ackman about the matter, despite several respondents pointing out that the traditional banking system uses more energy than Bitcoin.
When BTC bull Michael Saylor entered the discussion, he cautioned Bill Ackman to purchase the coin—not for the reason he stated in his remarks. He pointed out that, contrary to popular opinion, Bitcoin miners contribute to lower electricity prices for other users. Saylor, whose business MicroStrategy Incorporated owns 193,000 Bitcoin, volunteered to discuss the issue with Ackman if he is amenable.
Bitcoin detractors who delve deeper into the underlying technology often experience a shift in their stance on the popular digital currency. This has been observed in the past, and there’s cautious optimism that Michael Saylor, a vocal Bitcoin proponent, can persuade Bill Ackman, a prominent critic, to see the light. The hope mirrors Saylor’s perceived success in swaying Elon Musk towards Bitcoin in 2021, although the future remains uncertain.
