Billionaire Bill Ackman Believes Bitcoin Could Reach New Heights in an Economic Collapse
Billionaire investor Bill Ackman has expressed his belief that Bitcoinโs potential is limitless, particularly in the event of an economic collapse. He suggests that the cryptocurrency could create a never-ending cycle that drives its price up infinitely. Ackman made these comments on social media platform X, where he speculated on the potential impact of Bitcoin on energy prices, inflation, and the value of the US dollar.
Bitcoinโs Infinite Potential
- Ackman suggests that if Bitcoinโs price rises, it could lead to increased mining activity and greater energy consumption.
- This increased demand for energy would then drive up the cost of energy and contribute to rising inflation.
- The declining value of the US dollar due to inflation would further increase the demand for Bitcoin and spur even more mining activity.
- As this cycle continues, Ackman believes that Bitcoinโs price could theoretically reach infinity.
In response to Ackmanโs thread, Michael Saylor, CEO of MicroStrategy and a long-time Bitcoin advocate, agrees with the idea of accumulating Bitcoin but disagrees with Ackmanโs analysis of its impact on electricity prices.
Bitcoin Mining and Electricity Costs
- Saylor argues that most Bitcoin miners actually drive down the cost of electricity for other consumers rather than increasing it.
- He offers to discuss this topic further with Ackman in a one-on-one conversation.
Itโs important to note that at the time of writing, Bitcoin is trading at $68,592 with a 1.25% decrease in the last 24 hours.
Ackmanโs Perspective on Crypto
In November 2022, Ackmanโs views on digital assets underwent a significant shift. Previously, he expressed skepticism about cryptocurrencies due to concerns about their potential for fraudulent use.
However, Ackman changed his stance after recognizing the intrinsic value of crypto assets through the decentralized wireless network Helium (HNT).
Hot Take: Bitcoinโs Potential in an Economic Crisis
Bill Ackman, a billionaire investor, believes that Bitcoin has the potential to reach new heights if an economic collapse occurs. He suggests that the cycle of increased Bitcoin mining and energy consumption could drive up energy costs, leading to inflation and a decline in the value of the US dollar. This, in turn, would increase demand for Bitcoin and further drive up its price. However, Michael Saylor disagrees with Ackmanโs analysis of Bitcoinโs impact on electricity prices, stating that most Bitcoin miners actually reduce electricity costs for other consumers. Regardless of differing opinions, the future of Bitcoin remains uncertain and subject to various factors.
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