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Bill Ackman

Here’s what this hedge fund manager thinks of crypto despite the FTX wreck

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Here’s what this hedge fund manager thinks of crypto despite the FTX wreck

Pershing Square Capital Management’s founder and CEO, Bill Ackman, stated that cryptocurrency has the potential to tremendously benefit society. However, this was as long as the sector managed to wipe out the bad actors in the market. Even after the collapse of FTX, the billionaire investor was still optimistic about cryptocurrencies. He said,

“I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to believe that crypto can enable the formation of useful businesses and technologies that heretofore could not be created.”

The telephone, the internet, and crypto share one thing in common. Each technology improves on the next in terms of its ability to facilitate fraud. As such, I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to

— Bill Ackman (@BillAckman) November 20, 2022

Bill Ackman’s words of wisdom

The bankruptcy of FTX, which once had a $32 billion valuation, led to the industry-wide concern around contagion. Previously, in a nearly immediately deleted tweet, Bill Ackman praised Sam Bankman-Fried (SBF), the founder and chief executive of the now-defunct exchange, for his “accountability” and claimed to have “never seen a CEO take responsibility as [SBF] does here.”

Continuing his thoughts above, Ackman stated,

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“I think crypto is here to stay and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy. All legitimate participants in the crypto ecosystem should therefore be highly incentivized to expose and eliminate fraudulent actors as they greatly increase the risk of regulatory intervention that will set back the positive potential impact of crypto for generations.”

take any of the above as an investment recommendation. All of the above said, I think crypto is here to stay and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy. All legitimate participants in the crypto ecosystem

— Bill Ackman (@BillAckman) November 20, 2022

The hedge fund manager also cited Helium, the blockchain-based network, as a success story for cryptocurrencies. He further claimed that less than 2% of his assets were invested in various crypto projects, venture capital funds, and businesses. This was due to the looming threat of cryptocurrency frauds.

Ackman, further described the Terra indicident as the “crypto version of a pyramid scam” in May. This was despite the fact that he thought the blockchain held enormous promise.

The aftermath of the FTX collapse

Cryptocurrency values slumped drastically as a result of the crisis brought on by SBF’s fall from power and the collapse of his once-dominant FTX enterprise.

Over the past two days, the largest token, Bitcoin, lost around 4% of its value. Furthermore, Ethereum, which ranked second, lost about 7%. A judge of the most speculative inclination was in an already racy digital playground, as the memecoin Dogecoin witnessed a downfall of 11%.

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Despite recent difficulties, Ackman still stood still optimistic about cryptocurrencies. Furthermore, he also compared potential future influence on the economy and society to that of the telephone and the internet.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Bill Ackman

Billionaire Bill Ackman: Crypto Enables Creation Of Useful Businesses And ‘Is Here To Stay’

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Billionaire Bill Ackman: Crypto Enables Creation Of Useful Businesses And ‘Is Here To Stay’

According to Bill Ackman, billionaire and CEO of Pershing Square Capital Management, while crypto tokens are used by unethical promoters to perpetuate fraud, they “can enable the formation of useful businesses.” A previous critic of digital assets, Ackman insists that “crypto is here to stay” and that society will benefit even more when it is properly regulated.

Crypto a ‘Powerful Lever in Accessing a Global Workforce to Advance a Project’

The American billionaire hedge fund manager, Bill Ackman, has said — after studying some crypto projects — he now believes that “crypto can enable the formation of useful businesses and technologies that heretofore could not be created.” According to the billionaire, the ability to issue and use crypto tokens “to incentivize participants in a venture is a powerful lever in accessing a global workforce to advance a project.”

Still, Ackman insisted in a Nov. 20 Twitter thread that crypto, just like the telephone and the internet before it, can be a useful tool for facilitating fraud. To support this argument, he pointed to how “unethical promoters can create tokens simply to facilitate pump and dump schemes.” According to the billionaire’s reckoning, the “vast majority of crypto coins are used for fraudulent purposes rather than for building legitimate businesses.”

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Despite highlighting what he sees as the flaws of crypto, Ackman, who is the founder and CEO of Pershing Square Capital Management, uses two projects — Helium and DIMO — to explain why he has changed his viewpoint. He said:

Helium created a global Wi-Fi network used by Limebike and others to track devices globally as well as for other uses which benefit from access to global Wi-Fi networks. Helium’s global network of 974k hotspots was crowd created by individuals who purchased and deployed Helium hotspots to mine HNT, its native token.

According to Ackman, customers who want to want to use the network are compelled to buy HNT “and burn it.” The demand for HNT tokens is ultimately tied to the demand for the network, Ackman added.

Concerning DIMO, a decentralized data-driven ecosystem that seeks to connect car owners with manufacturers, the billionaire said he also envisions a “two-sided market for DIMO tokens developing over time where data-users buy and burn tokens that are minted by car owners with DIMO data collection devices.”

Crypto Investing as a Hobby

Meanwhile, the billionaire further acknowledged in the Twitter thread that he is an investor in DIMO. He added that his overall investments in crypto-related projects are less than 2% of his assets. Cautioning his over 500K followers, Ackman said:

I invest more as a hobbyist trying to learn than as a careful investor as I minimize the time I spend on non-Pershing Square investments so please don’t rely on my due diligence or take any of the above as an investment recommendation.

Ackman, who has previously asserted that crypto tokens like bitcoin have no intrinsic value, ended the thread by asserting that “crypto is here to stay” and that it has the potential to be more beneficial when it is properly regulated.

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What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Arrest

Desperate LUNA Investor Arrested, New Terra Network Announced, Davos Blockchain Talk, And More — Bitcoin.com News Week In Review

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Desperate LUNA Investor Arrested, New Terra Network Announced, Davos Blockchain Talk, And More — Bitcoin.com News Week In Review

From a desperate investor’s ill-advised visit to Terra co-founder Do Kwon’s house resulting in an arrest, the announcement of a new Terra network, and blockchain talk at Davos, to predictions of U.S. economic collapse if inflation isn’t reigned in quickly, there’s no shortage of action-packed crypto stories this past week. Without further ado, this is the Bitcoin.com News Week in Review.

LUNA Investor Arrested for Knocking on Do Kwon’s Door After Losing $2.4 Million in Terra Crash

A crypto investor has been arrested after knocking on Do Kwon’s door following the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). He lost about $2.4 million and is now under investigation by the South Korean police. “I felt like I was going to die,” he said about losing his investments.

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A New Terra Network Is Coming With Support From Major Exchanges, LUNA and UST Holders Eligible for Airdropped Tokens

According to a recent announcement from the Terra blockchain team, the community voted and passed a proposal that plans to launch a new genesis version of the Terra blockchain without an algorithmic stablecoin. The governance proposal called “Terra Ecosystem Revival Plan 2” has been amended and the final release of the new Terra Core codebase has been released to prepare for the new network.

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Billionaire Ray Dalio Speaks in Davos — Says ‘Blockchain Is Great, but Let’s Call It Digital Gold’

This week the world has been talking about the World Economic Forum (WEF) meeting in Davos, Switzerland, which started on May 22 and ends on May 26. At the event, Bridgewater Associates founder Ray Dalio spoke about today’s economy, the Federal Reserve, cash, and cryptocurrencies. Dalio noted at the WEF conference that he believes blockchain is great, but says “let’s call it a digital gold.”

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Billionaire Investor Bill Ackman Says Unless the Fed Aggressively Hikes Rates, Stock Market Could Crash, ‘Catalyzing an Economic Collapse’

Billionaire hedge fund manager and founder of Pershing Square Capital Management, Bill Ackman, believes “inflation is out of control.” The investor thinks that if the Federal Reserve “doesn’t do its job” by applying “aggressive monetary tightening,” the U.S. economy could collapse.

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Arrest, Bill Ackman, Blockchain, Davos, digital gold, do kwon, economic collapse, Fed, inflation, Investor, LUNA, network, Pershing Square Capital Management, Ray Dalio, Terra, UST, Week in Review, WEF

What are your thoughts on this week’s hottest crypto stories from Bitcoin.com News? Let us know in the comments section below.

Bitcoin.com

Bitcoin.com is your premier source for everything Bitcoin-related. We can help you buy bitcoins and choose a bitcoin wallet. You can also read the latest news, or engage with the community on our Bitcoin Forum. Please keep in mind that this is a commercial website that lists wallets, exchanges and other Bitcoin-related companies.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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200 to 300 bps

Billionaire Investor Bill Ackman Says Unless The Fed Aggressively Hikes Rates, Stock Market Could Crash, ‘Catalyzing An Economic Collapse’

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Billionaire Investor Bill Ackman Says Unless The Fed Aggressively Hikes Rates, Stock Market Could Crash, ‘Catalyzing An Economic Collapse’

Billionaire hedge fund manager and founder of Pershing Square Capital Management, Bill Ackman, believes “inflation is out of control.” The investor thinks that if the Federal Reserve “doesn’t do its job” by applying “aggressive monetary tightening,” the U.S. economy could collapse.

Pershing Square Founder Bill Ackman Thinks ‘Inflation Is out of Control’

While the headlines talk about the Federal Reserve’s chair, Jerome Powell, getting “aggressive” with monetary policy by implementing rate hikes and revealing the central bank would tighten large asset purchases this summer, many economists and financial players don’t believe the Fed can do its job. Moreover, Atlanta Fed president Raphael Bostic told the press that Fed policymakers could pause interest rate hikes.

Bill Ackman is the founder and CEO of Pershing Square Capital Management, a hedge fund management company founded in 2004.

On Tuesday, founder of Pershing Square Capital Management Bill Ackman explained on Twitter that if the Fed doesn’t step in to fix inflation, the market will complete the job.

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“Inflation is out of control. Inflation expectations are getting out of control,” Ackman tweeted. “Markets are imploding because investors are not confident that the Federal Reserve will stop inflation. If the Fed doesn’t do its job, the market will do the Fed’s job, and that is what is happening now.” The billionaire hedge fund manager, who is also considered an “activist investor,” further added:

The only way to stop today’s raging inflation is with aggressive monetary tightening or with a collapse in the economy. With today’s unprecedented job openings, 3.6% unemployment, long-term supply/demand imbalances in energy, ag and food, housing, and labor, and with the wage-price spiral that is underway, there is no prospect for a material reduction in inflation unless the Fed aggressively raises rates, or the stock market crashes, catalyzing an economic collapse and demand destruction.

Hedge Fund Manager Says ‘Current Fed Policy and Guidance Are Setting Us up for Double-Digit Sustained Inflation’

Ackman is not the only one that’s concerned about the Federal Reserve’s ability to stop inflation. Gold bug and economist Peter Schiff doesn’t think inflation will let up, no matter what the Fed does.

“Don’t try to figure out why inflation is so high now, but why it’s been so low in the past,” Schiff said on Tuesday. “Once you understand how inflation entered the economy and the long lag between rising asset prices and rising consumer goods prices, you’ll understand why high inflation is here to stay.”

Following Jerome Powell’s recent statements and Bostic’s opinion, the Pershing Square executive noted how Fed policymakers have been making dovish comments.

“In the last day or so, various current and former Fed members have waffled and made dovish remarks proposing a modest increase in rates and a pause in the fall,” Ackman tweeted. “The Fed has already lost credibility for its misread and late pivot on inflation. There is no economic precedent for 200 to 300 bps of fed funds addressing 8% inflation with employment at 3.6%.”

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Similar to Schiff’s commentary, the Pershing Square founder explained that inflation could end up being a long-term problem. Ackman continued:

Current Fed policy and guidance are setting us up for double-digit sustained inflation that can only be forestalled by a market collapse or a massive increase in rates.

The difference between Schiff and Ackman is the Pershing Square hedge fund manager seems to be a bit more hopeful the Fed will get things right, in contrast to Schiff, who believes the central bank will ultimately fail. Ackman thinks poor policy is the reason no one is buying stocks and talked about how the “downward market spiral [can] end.”

“It ends when the Fed puts a line in the sand on inflation and says it will do ‘whatever it takes,’” Ackman concluded on Tuesday. “And then demonstrates it is serious by immediately raising rates to neutral and committing to continue to raise rates until the inflation genie is back in the bottle. Stocks (of real businesses) are cheap once again.” Ackman further said:

Markets will soar once investors can be confident that the days of runaway inflation are over. Let’s hope the Fed gets it right.

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200 to 300 bps, Atlanta Fed president, Bill Ackman, collapsed economy, economic collapse, economics, Economics Report, Economy, Fed, fed policy, Federal Reserve, hedge fund manager, Hedge Funds, inflation, inflation rate, Inflation rising, jerome powell, Peter Schiff, raphael bostic, Stock Market, Stock Market Crash, stocks, sustained inflation, US economy, US Inflation

What do you think about Bill Ackman’s recent Twitter thread about inflation and the Fed stepping in to fix the situation with aggressive monetary policy? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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