The legendary investor “fears” the infinite growth of the price of Bitcoin

Bitcoin (BTC) recently reached a new all-time high (ATH). The question now is whether the digital currency can continue to rise. Pershing Square Capital Management founder and CEO Bill Ackman is optimistic I painted This is a scenario in which BTC could rise further.

Ackman describes a cycle in which a rise in the price of Bitcoin leads to increased mining activity and thus increased energy consumption. According to the CEO, this then leads to higher energy costs and inflation.

Bill Ackman asserts that this can lead to an endless spiral. The price of BTC could continue to rise and energy costs will continue to increase. Ackman says economic collapse will eventually be inevitable.

Scenario:

A rise in the price of Bitcoin leads to increased mining and increased energy use, which leads to a higher cost of energy, which leads to higher inflation and a lower dollar, which leads to increased demand for Bitcoin and more mining, which leads to increased demand for energy and the cycle continues.

Bitcoin… https://t.co/a5LzX69R7q

– Bill Ackman (@BillAckman) March 9, 2024

Review by Michael Saylor

On X, the cryptocurrency community went crazy over Akman's comment. Michael Saylor, who owns billions of dollars in Bitcoin through his company MicroStrategy, progress To speak directly with Bill.

Saylor believes that miners are actually reducing electricity costs for consumers, and therefore not increasing them as the CEO suggests. He advised Ackman to buy Bitcoin, an investment the CEO has largely stayed away from.

MicroStrategy's chief administrative officer sees BTC moving from “better gold” to a potential competitor to the S&P 500 stock index. With Bitcoin's current market capitalization at around $1.3 trillion, versus $40 trillion for the S&P 500, Saylor sees the digital currency's potential beyond Just a safe haven.