'May Be I Should Buy Some Bitcoin,' Says Bill Ackman As He Weighs In On Energy-Guzzling Crypto Mining, MicroStrategy's Saylor Says He Would Like To Discuss 1-On-1
Amid Bitcoin‘s rally, a post on X by hedge fund manager Bill Ackman on Saturday suggested he was thinking about purchasing the apex crypto, although the reason he gave did not sound positive for cryptocurrencies.
What Happened: Ackman, the founder of Pershing Square, said, “Maybe I should buy some Bitcoin.” He apparently wanted to buy Bitcoin as an inflation hedge.
The hedge fund manager went on to say that rising Bitcoin prices could lead to increased mining, which, in turn, would increase energy usage and drive up energy costs. This would push up inflation and drive down the U.S. dollar, he said.
In this scenario, Bitcoin, considered an alternative to sovereign currencies, would see increased demand and mining, and the cycle would go on, Ackman said.
“Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses,” he added.
Ackman also warned of a scenario working in reverse, apparently suggesting that Bitcoin could fall.
Bill Ackman@BillAckmanMar 09, 2024The problem of course is that it also works in reverse. https://t.co/s1rpdhlpfw
His comments came in response to an X user’s post in which they shared an article about Bitcoin miners devouring energy at a record pace during the crypto run-up.
See Also: Best Crypto To Buy Now
Bitcoin Bulls Respond: Ackman’s comments drew responses from Bitcoin backers Michael Saylor, CEO of MicroStrategy, and financier Anthony Scaramucci.
Saylor said, “You should buy some #bitcoin, but not for the reasons cited above.” He noted that most Bitcoin miners were driving the cost of electricity down for other consumers and not up.
“Most bitcoin miners are driving the cost of electricity down for other consumers, not up. Let me know if you would like to discuss 1 on 1,” he said.
Meanwhile, Scaramucci encouraged Ackman to spend some time on Bitcoin mining. Miners, according to the financier, “cannot pay competitive rates for energy and survive,” and so they need to tap into “low cost, difficult to access and/or excess energy sources.”
“As such, miners will not drive up energy prices. On the other hand, AI will likely cause this problem and should, I think, be the focus of your concern,” he said.
Anthony Scaramucci@ScaramucciMar 09, 2024.@billackman I encourage you to spend some time on bitcoin mining. I used to (incorrectly) think as you do on this topic. Bitcoin miners cannot pay competitive rates for energy and survive. They need to tap into low cost, difficult to access and/or excess energy sources. As...
Miner Riot Platforms executive Pierre Rochard also differed with Ackman.
“The cost of energy has been decreasing while the bitcoin price has been rising,” he said.
“The grid has a lot of excess capacity off-peak, and mining is interruptible enough to avoid peaks with demand-response.”
At last check, Bitcoin rose 1.69% to $69,495.09, according to Benzinga Pro data.
Read Next: Bitcoin ETFs Dominate With Strong Inflows, Leaving Gold ETFs In The Dust
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.