Billionaire Bill Ackman says Bitcoin’s (BTC) potential could be limitless in the event of an economic collapse.
In a new thread on the social media platform X, the CEO of hedge fund Pershing Square Capital Management says say that the crypto king could create an endless loop that would cause the price to rise indefinitely.
“A scenario:
Bitcoin’s price increase leads to more mining and increased energy consumption, which increases energy costs, which increases inflation and causes the dollar to fall, which increases demand for Bitcoin and increased mining, which increases energy demand and continues the cycle.
Bitcoin goes to infinity, energy prices skyrocket and the economy collapses.
Maybe I should buy some Bitcoin.”
Responding to Ackman, Michael Saylor, longtime BTC advocate and current executive chairman of software development company MicroStrategy, said: say that while Ackman is right to want to accumulate BTC, he is unaware of its impact on the price of electricity.
“You should buy some Bitcoin, but not for the reasons mentioned above. Most Bitcoin miners ensure that electricity costs for other consumers fall, not rise. Let me know if you’d like to talk one-on-one.”
Bitcoin is trading at $68,592 at the time of writing, down 1.25% over the past 24 hours.
In November 2022, Ackman changed his position on digital assets. At the time, the billionaire said crypto’s ability to be used fraudulently initially made him question the overall validity of the asset class.
However, he says the decentralized wireless network Helium (HNT) made him realize that crypto assets can have intrinsic value.
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Generated image: Midjourney