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Bill Ackman, a millionaire investor and renowned short trader, is generating a lot of talk on crypto X with his recently disclosed plans to purchase Bitcoin (BTC).
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The Story of Bitcoin Mining and Bill Ackman
Bill Ackman initiated the Bitcoin discourse by immediately replying to a post made by an X user going by the handle @thechek_Fin. The post explained how the recent surge in the price of the cryptocurrency over the last week resulted in miners consuming a significant amount of energy.
Ackman responded to the post by outlining a scenario in which the rise in
Bitcoin's price will encourage more mining, which will in turn require more
electricity. This will raise the price of energy, which might ultimately
result in a spike in inflation and a decline in the value of the US dollar.
Bill Ackman said that as Bitcoin proponents usually allude to the adoption of BTC on the depreciated Dollar, there would be an increase in demand for the leading digital currency, which will in turn drive up the need for more mining and energy.
According to Ackman, the cycle is set to continue, driving energy prices through the roof, Bitcoin to infinity, and ultimately the collapse of the economy. He concluded by speculating about this situation and suggesting that he "should buy some Bitcoin."
Bill Ackman, a short seller, is not as much of a BTC hater as people like Jim
Cramer and Peter Schiff are, but the current example highlights his viewpoint
on the currency's part in the US economy's collapse.
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The Sector Responds
Industry participants have responded in droves to Bill Ackman's story, attempting to refute the seemingly incriminating comparison of Bitcoin mining. Prominent supporters of Bitcoin offered to have one-on-one conversations with Bill Ackman about the matter, despite several respondents pointing out that the traditional banking system uses more energy than Bitcoin.
When BTC bull Michael Saylor entered the discussion, he cautioned Bill Ackman to purchase the coin—not for the reason he stated in his remarks. He pointed out that, in contrast to popular opinion, Bitcoin miners contribute to lower electricity prices for other users. Saylor, whose business MicroStrategy Incorporated is in possession of 193,000 Bitcoin, volunteered to discuss the issue with Ackman if he is amenable.
When Bitcoin detractors learn more about the technology behind the commodity,
they have been known to reverse their opinions regarding the popular digital
currency. Although there are still no guarantees, hopes are high that Saylor
can persuade Ackman to change his mind, much as it was thought he had done
with Elon Musk in 2021.