Renowned short seller and billionaire investor Bill Ackman is stirring up the crypto community with his recent announcement to purchase Bitcoin (BTC). This move highlights Ackman’s interest in the growing trend of Bitcoin mining and its potential implications on the economy.
The discussion surrounding Bitcoin began when Ackman responded to a user on the platform X, who shared a post about the significant rise in Bitcoin’s price and its impact on energy consumption by miners. In his response, Ackman presented a scenario where the upward trend in Bitcoin’s price would lead to an increase in mining, resulting in a higher demand for energy. This could potentially drive up the cost of energy, leading to inflation and the devaluation of the US Dollar.
Acknowledging Bitcoin’s potential role in the devaluation of the Dollar, Ackman predicted that the demand for the premier digital currency would continue to rise, along with the demand for more mining and energy. He even jokingly suggested that he should buy some Bitcoin in light of this scenario.
While Ackman is not a staunch critic of BTC like other prominent figures such as Peter Schiff and Jim Cramer, his analogy showcases his perspective on Bitcoin’s role in the potential collapse of the US economy.
Ackman’s remarks sparked a series of reactions from industry players, some of whom attempted to refute his argument about Bitcoin’s energy consumption. Some pointed out that traditional banking systems consume more energy than Bitcoin, while others offered to discuss the issue with Ackman in a one-on-one conversation.
Bitcoin advocate Michael Saylor also joined in the conversation, urging Ackman to consider purchasing Bitcoin for a different reason. He explained that Bitcoin miners actually help lower the cost of electricity for consumers, contrary to popular belief. Saylor, whose company MicroStrategy Incorporated holds a significant amount of Bitcoin, even offered to debate the matter with Ackman.
It is not uncommon for Bitcoin critics to change their stance when they are exposed to the technology behind the asset. While there are no guarantees, many are curious to see if Saylor can convince Ackman to change his mind, just as he was able to do with Elon Musk earlier this year.
