American hedge fund manager and billionaire Bill Ackman has sparked a stir in the crypto community with his recent remarks about Bitcoin.
Ackman, the CEO of Pershing Square Capital, outlined a scenario where he might consider buying Bitcoin.
Why Bill Ackman Could Buy Bitcoin
Bill Ackman theorized that a Bitcoin price surge driven by increased demand and energy usage could lead to rising energy costs, inflation, a weakening dollar, and further BTC demand. He mused that such a scenario could ultimately lead to economic collapse, prompting him to contemplate investing in Bitcoin.
However, Ackman acknowledged the flip side of this scenario, recognizing its potential reversibility.
“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 goes to infinity, energy prices skyrocket, and the economy collapses,” Ackman said.
Ackman has had little to no relationship with cryptocurrency. In 2022, the billionaire stated that he believed that Sam Bankman-Fried was not a crook and that FTX failed because the disgraced founder was trying to avoid embarrassment. Before then, he had revealed that crypto comprised less than 2% of his investment portfolio.
At the time, Ackman said he was a small investor in some crypto projects and seven crypto venture funds, adding that his investments were more of a hobby.
