This billionaire wants to buy bitcoin

American hedge fund manager and billionaire Bill Ackman recently sparked an uproar in the crypto community with his comments about Bitcoin.

Ackman, the CEO of Pershing Square Capital, outlined the scenarios in which you might consider buying Bitcoin.

Why did Bill Ackman buy Bitcoin?

Bill Ackman has theorized that a rise in the price of Bitcoin due to demand and energy use will lead to higher energy costs, inflation, a weakening of the dollar and more demand for BTC. Such a situation may eventually lead to an economic collapse, prompting him to consider investing in Bitcoin.

However, Ackman acknowledges the flip side of this scenario, noting that it could be reversed.

“Bitcoin inflation leads to increased mining and higher energy use, which drives up the price of energy, which leads to higher inflation and a lower dollar, increased demand for Bitcoin and increased mining, increased demand for energy, and the cycle continues. Bitcoin goes to infinity, energy prices increase, And the economy collapsed,” Ackman said.

Read more: Bitcoin price prediction for 2024/2025/2030

Ackman had nothing to do with cryptocurrency. In the year In 2022, they believe that the billionaire Sam Bankman-Fried is not a fraud and that FTX failed because the disgraced founder was trying to avoid disgrace. Prior to that, he revealed that crypto investments comprised less than 2 percent of his portfolio.

At the time, Ackman said he was a small investor in some crypto projects and seven crypto venture funds, saying his investments were more of a hobby.

Ackman's comments have sparked a number of comments from prominent figures in the crypto market, pointing out the flaws in his logic.

“Mining is insanely competitive and loses money due to high energy prices. The feedback loop of mining actually leads miners to more and more remote/closed forms of energy, not the energy market competing with residential electricity demand. TL;DR Mining doesn't make energy more expensive. It's otherwise wasted.” It allows us to create power,” said River CEO Alexander Leishman.

Meanwhile, MicroStrategy CEO Michael Saylor encouraged Ackman to consider buying bitcoin, but disagreed with the reasoning. Sailer pointed out that most Bitcoin miners have reduced electricity costs for users and offered one-on-one chat invitations.

Read more: How to earn free Bitcoin mining income in 2024 without investment

Similarly, Pierre Rochard of Riot Platforms Research, invited Ackman to weigh in on the economics of Bitcoin mining. Rochard also emphasized the complex feedback loops and limitations on Bitcoin's purchasing power due to resource costs and owner rebalancing.

Environmentalist and investor Daniel Batten says Ackman's logic about BTC mining is flawed.

“The logic breaks down with greater energy use => higher energy costs. Bitcoin mining is the equivalent of a user of trapped/wasted energy, which ERCOT's CEO credits for keeping energy costs low,” Batten added.