American billionaire and investment legend Stanley Druckenmiller has changed his tune on bitcoin, realising that bitcoin will probably outpace gold in the coming years.
In Brief
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Investment legend Stanley Druckenmiller has changed his tune on bitcoin.
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The billionaire believes the bitcoin will outpace gold.
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Will Ray Dalio finally take the bitcoin plunge?
Speaking on CNBC, Druckenmiller said that even though he was more heavily invested in gold due to its long-standing brand, he also purchased some bitcoin – though he didn’t specify how much.
“Bitcoin could be an asset class that has a lot of attraction as a store of value to both millennials and the new West Coast money — and, as you know, they got a lot of it,” said the billionaire. “It’s been around for 13 years and with each passing day it picks up more of its stabilization as a brand.”
To be fair, bitcoin’s white paper came out 11 years ago in 2009, but Druckenmiller is still relatively new to the crypto world.
He went on to say that he is more invested in gold than BTC:
“I own many many more times gold than I own Bitcoin. But 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.”
The former chairman and president of Duquesne Capital, Druckenmiller has a net worth of $4.4 billion. His comments represent a change in his tone on bitcoin and perhaps, in cryptocurrency more braodly. While he invested in a stablecoin project Basis in 2018, the investor claimed last year that bitcoin could not become a medium of exchange due to its volatility.
“I don’t think I’m a neanderthal, which is what I’ve been called when I’ve said I didn’t want to own Bitcoin,” he said at the time.
Druckenmiller has put forward gold as a safe haven asset to protect investors from fiat exposure, with countries like China seemingly eager to challenge the hegemony of the U.S. dollar.
Who’s next?
Now that so many investment heavy-weights have taken up the bitcoin trade, the question is: will Ray Dalio finally take the plunge?
Indeed, Paul Tudor Jones invested over 2% of his portfolio into bitcoin early this year, alongside his peers like Chamath Palihapitiya who has been a bitcoin advocate for years.
Given the striking similarities between gold, bitcoin and Ray Dalio’s famous thesis that ‘cash is trash’, perhaps it’s only a matter of time before the light bulb moment takes Ray down the bitcoin path.
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