2024-3-11 14:45 |
Billionaire investor and CEO of Pershing Square Capital Bill Ackman has recently commented on Bitcoin’s soaring price, suggesting that its meteoric rise could have significant implications for energy production, consumption, and the broader economy.
In a Sunday tweet, Ackman presented a scenario in which the escalating value of Bitcoin could trigger a surge in energy consumption. He posited that this could subsequently lead to inflationary pressures and a depreciation of the US dollar.
“Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses. Maybe I should buy some Bitcoin,” said Ackman, adding later, “The problem, of course, is that it also works in reverse.”
Ackman’s tweet ignited a spirited discussion within the Bitcoin community. While some challenged the accuracy of his projections, others concurred with his conclusion that investing in Bitcoin might be prudent.
Michael Saylor, a staunch advocate for Bitcoin and the founder of Bitcoin development company MicroStrategy, suggested that Ackman consider purchasing Bitcoin for different reasons.
“You should buy some Bitcoin, but not for the above reasons. Most bitcoin miners are driving the cost of electricity down for other consumers, not up,” Saylor responded.
Notably, Ackman’s optimism towards Bitcoin isn’t novel. In November 2022, the businessman expressed positivity about cryptocurrencies despite setbacks like the collapse of FTX.
“I think crypto is here to stay and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy. All legitimate participants in the crypto ecosystem should therefore be highly incentivized to expose and eliminate fraudulent actors as they greatly increase the risk of regulatory intervention that will set back the positive potential impact of crypto for generations.” Ackman had stated.
At the time, Ackman disclosed being a ‘minor investor’ in various crypto enterprises, with investments constituting around 2% of his total assets.
That said, the discourse surrounding Ackman’s scenario underscores the ongoing debate concerning the environmental ramifications of Bitcoin mining. While some argue that Bitcoin mining is environmentally unsustainable, others contend that it promotes the adoption of alternative energy sources, thus reducing overall energy costs.
Meanwhile, Bitcoin’s price continues to climb upward. The cryptocurrency has rebounded impressively after a robust start to March, with prices surging to as high as $70,083.05 on March 8 before experiencing a slight pullback.
Bitcoin and Ethereum outperformed traditional equities this week, according to crypto analytics firm Santiment. The firm highlighted that the dropping exchange balances also indicate that investors are holding onto their Bitcoin rather than selling, a trend indicative of bullish sentiment in the market.
Bitcoin was trading at $69,659 at press time, reflecting a 1.87% increase in the past 24 hours.
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