Billionaire hedge fund manager Bill Ackman has recently expressed interest in Bitcoin, suggesting a scenario in which the cryptocurrency’s price could skyrocket. Ackman theorized that as the price of Bitcoin rises, it would lead to increased mining and greater energy consumption, causing inflation and a decline in the value of the dollar. This would subsequently drive up demand for Bitcoin and further increase energy consumption, creating a cyclical effect. Ackman humorously concluded by contemplating whether he should invest in Bitcoin with its potential of reaching infinite value and causing an economic collapse.
Naturally, Ackman’s comments garnered attention within the Bitcoin community, including a response from Michael Saylor, the founder and Executive Chairman of MicroStrategy. Saylor explained that Bitcoin mining actually tends to reduce the cost of electricity for other consumers rather than driving it up, offering to discuss this matter further with Ackman privately.
While Ackman has mostly stayed away from Bitcoin and cryptocurrencies in the past, he mentioned being a small investor in some crypto projects and funds in 2022. He clarified that his approach to investing in this space is more akin to a hobbyist trying to learn rather than a cautious investor.