Ackman's Bitcoin Infinity Loop Sparks Debate

Ackman's Bitcoin Speculation
Billionaire hedge fund manager Bill Ackman, founder and CEO of Pershing Square Capital Management, recently shared his thoughts on Bitcoin, suggesting a scenario where the cryptocurrency's price could soar to unprecedented levels. Ackman proposed a cycle where an increase in Bitcoin's price leads to more mining and higher energy consumption, which in turn drives up energy costs, causes inflation, and weakens the dollar, thereby increasing demand for Bitcoin even further. "Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses," Ackman mused on X, formerly known as Twitter. However, he also acknowledged the possibility of this cycle working in reverse.
Industry Reactions
Ackman's speculative post quickly garnered attention from the Bitcoin community, including a response from Michael Saylor, founder and Executive Chairman of MicroStrategy. Saylor disagreed with Ackman's reasoning, stating, "Most bitcoin miners are driving the cost of electricity down for other consumers, not up." He offered to discuss the matter further with Ackman one-on-one. Despite his speculative post, Ackman has generally kept a distance from Bitcoin and the broader crypto market, describing his involvement as more of a hobbyist endeavor rather than serious investment.
Ackman's Crypto Engagement
Although Bill Ackman has been mostly cautious about diving into the cryptocurrency space, he revealed in 2022 that he had made small investments in some crypto projects and venture funds. Ackman's approach to crypto investment has been described as that of a "hobbyist trying to learn than as a careful investor," indicating a curiosity about the sector rather than a full-fledged endorsement or investment strategy. $Invesco QQQ Trust(QQQ.US)$ $SPDR S&P 500 ETF(SPY.US)$ $S&P 500 Index(.SPX.US)$ $Nasdaq Composite Index(.IXIC.US)$ $Dow Jones Industrial Average(.DJI.US)$