Billionaire investor Stanley Druckenmiller said on CNBC on Monday that he owns Bitcoin, becoming the latest high-profile to get in on the leading digital currency. The legendary investor said,
“I’m a bit of a dinosaur, but I have warmed up to the fact that Bitcoin could be an asset class that has a lot of attraction as a store of value.”
Although compared to bitcoin, his gold position is “many, many more times” larger, the hedge fund manager predicted his allocation in BTC would outperform.
“Frankly, if the gold bet works the bitcoin bet will probably work better because it’s thinner, more illiquid and has a lot more beta to it,” said Druckenmiller adding Bitcoin “has a lot of attraction as a store of value to both millennials and the new West Coast money and, as you know, they have a lot of it.”
Correlation between Bitcoin and gold started trending upwards again in recent weeks, however, it is still far from the high seen in August.
Last year, Druckenmiller called bitcoin “a solution in search of a problem” adding he doesn’t “understand why we need this thing.” Now, he says that having a 13-year history, it picks up more and more brand value each passing day.
“The smartest macro investors now own BTC and they will trigger a procession of macro investors to do the same,” said a partner of Crypto hedge fund The Spartan Group.
With this, Druckenmiller has joined the likes of Michael Saylor, Bill Miller, Jack Dorsey, and Paul Tudor Jones among others to allocate a portion of his vast wealth in Bitcoin. Raoul Pal, co-founder of Real Vision said,
“The significance of the world’s greatest and most respected money manager – Stan Druckenmiller – saying just now that he is long bitcoin can not be overstated.
That has removed every obstacle for any hedge fund or endowment to invest.”
Bitcoin naysayers have begun to change their tune, from JPMorgan, PayPal, to Nouriel Roubini although the latter one took to Twitter again to blast the digital currency which is beating the traditional assets by a wide margin, up 115% YTD.
Last week, Druckenmiller said that he is shorting the US Dollar and this time added that he is anticipating a 3-to-4 year decline in it.
— Blockfolio (@blockfolio) November 9, 2020