Even though Druckenmiller has invested in Bitcoin, he still has higher allocations in gold. The investor describes the cryptocurrency as an attractive store of value.
With over 30 years in the financial world, Stanley Freeman Druckenmiller has become an authoritative voice in the United States. He is one of the most successful investors and hedge fund managers in the country. His reputation has grown even more due to his recent statements about Bitcoin.
In recent days, Druckenmiller suggested that he is convinced of the success of Bitcoin as a store of value in an interview for the CNBC news network. The investor considers that, in the face of a possible devaluation of the US dollar (USD), gold and Bitcoin could be store-of-value assets with good prospects.
On one occasion, he predicted that the British pound (GBP) would depreciate as a result of Brexit. Similarly, Druckenmiller predicts that the US dollar could begin to devalue within three to four years. The financial expert has even started betting against the US dollar, according to reports from Bloomberg. Meanwhile, he keeps his allocations in gold and the cryptocurrency that Satoshi Nakamoto created.
The investor said that he has positioned “many times” larger in gold. However, he clarified that he also relies on Bitcoin as a store of value. The reasons for this are that Bitcoin has characteristics in its favor that gold does not have, such as its liquidity, portability, and ease of transfer.
He concluded that “if the gold bet works, the Bitcoin bet will probably work better.” Likewise, Druckenmiller highlighted the fact that the best performing cryptocurrency on the market is now more than 12 years old. With this, he suggests that it is a project with a certain maturity and increasing stability. In this sense, he believes that Bitcoin is attractive as a store of value not only for millennials. He notes that the “new west coast” has invested a lot of money in cryptocurrency.
Within the US financial market, Stanley Druckenmiller has earned a significant reputation, having created his own hedge fund company, Duquesne Capital. He also worked together with George Soros, one of the most controversial billionaires of recent times. Druckenmiller is currently focusing on his investments, which are not few. According to Forbes, he is one of the richest men in the United States.
Druckenmiller’s statements may not be enough to contribute to the trend for Bitcoin as a store of value. However, he is not the only legendary investor who has spoken highly of Bitcoin in recent days. Bill Miller, one of Amazon’s early investors and Legg Mason Capital Management’s key part, said that Bitcoin has had an excellent year and an even more excellent month.
Soon after, Bitcoin and finance researcher Preston Pysh himself confirmed that Miller has been venturing into the Bitcoin world since 2015. This practice makes him a long-time cryptocurrency hodler. This fact fuels the narrative that institutional investors are actively participating in this market.
By Alexander Salazar
