Bill Ackman Wants to Buy Bitcoin (BTC), But For The Wrong Reasons
Legendary short trader and billionaire investor Bill Ackman is creating a major buzz on crypto X with his newly unveiled plans to buy Bitcoin (BTC).
Bill Ackman and the Bitcoin Mining Narrative
The conversation about Bitcoin started with Bill Ackman responding directly to a post from an X user with the handle @thechek_Fin which highlighted how the past rally in the price of the cryptocurrency over the past week led to miners devouring a vast amount of energy.
In reaction to the post, Ackman presented a scenario beginning with the rally in the price of Bitcoin which will lead to an increase in mining and ultimately, a greater energy use. This will in turn drive the cost of energy, a scenario that might ultimately lead to an inflationary surge and the devaluation of the US Dollar.
With Bitcoin proponents typically hinting at the adoption of BTC on the devalued Dollar, Bill Ackman noted that the demand for the premier digital currency will be driven up and correspondingly, the demand 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
Ackman pointed out that the cycle is poised to continue, leading Bitcoin to go to infinity, energy prices skyrocketing and the economy collapsing eventually. Drawing on this scenario, he ended his take saying perhaps he “should buy some Bitcoin.”
Known as a short seller, Bill Ackman is not necessarily a critic of BTC the way Peter Schiff and Jim Cramer are known, however, the current analogy showcases his position relating to Bitcoin’s role in the collapse of the US Economy.
The Industry Reacts
The narrative presented by Bill Ackman has generated a lot of responses from industry players who attempted to counter the presumably damning Bitcoin mining analogy. While some responders noted that the legacy banking system consumes more energy than Bitcoin, major Bitcoin proponents offered to discuss the issue with Bill Ackman on a 1 on 1 basis.
BTC bull Michael Saylor joined the conversation, admonishing that Bill Ackman needed to buy the coin, not because of the reason he cited in his words. He noted that contrary to the public’s belief, Bitcoin miners help drive down the cost of electricity for other consumers. Saylor, whose company MicroStrategy Incorporated holds 193,000 Bitcoin, offered to debate the matter if Ackman is open to it.
There are instances of Bitcoin critics changing their stance about the flagship digital currency when they get exposed to the asset’s technology. While no assurances are given at the moment, expectations are mounting to see if Saylor will be able to change Ackman’s mind like it was assumed he changed Elon Musk’s in 2021.
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Filed under: News - @ January 1, 1970 12:00 am