Stanley Druckenmiller is betting on Bitcoin against the dollar that has been depreciating in value ever since the coronavirus outbreak.
In an interview with news outlet CNBC, self-made billionaire and leading hedge fund manager Stanley Druckenmiller said he owns Bitcoin as a hedge against the falling US dollar.However, Druckenmiller said his good position is “many, many more times” larger than his Bitcoin allocation. Both gold and Bitcoin have been cited as leading safe havens in their respective fields. However, the debate on which asset between the two is much better depends solely on the investors’ needs.According to metrics provided by CoinGecko, Bitcoin has rallied over 226 times since 2013. On the other hand, gold has rallied 69.86% in the past five years.During the pandemic, Bitcoin has rallied approximately 75% while Gold is up around 28.10% according to figures provided by gold.org.However, each asset has its own merits that make investors put their capital in them. For Bitcoin, its liquidity makes it favorable among institutional and retail investors while Gold is highly attractive to long-term investors.“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,” Druckenmiller said during the interview.He added that Bitcoin has a lot of attraction as a store of value to both the millennials and the west coast money. Whereby he highlighted that “as you know, they have a lot of it.”Druckenmiller: Bitcoin as a Store of ValueApparently, Druckenmiller is betting on Bitcoin against the dollar that has been depreciating in value ever since the coronavirus outbreak. Mostly fueled by the high market injection of paper money by the Fed during the past stimulus package.With another stimulus package expected to be passed after the US election heat calms, the value might reach new lows. Bitcoin, which has a fixed maximum supply and controlled inflation rate, is poised to get investors’ attention in the coming years. As a result, Bitcoin’s market price is set to significantly scale higher.At the time of writing, Bitcoin was trading around $15,423.32, having added approximately 36.7%, 18.2%, 13.8% in the past 30 days, two weeks, and seven days respectively. Notably, the asset had a market capitalization of around $285,923,219,018 with a daily trading volume in the past 24 hours at $29,507,516,226.There are 18,538,368 Bitcoins in circulation out of the total 21 million BTC to ever exist. Druckenmiller made his fortune in the hedge fund business for 30 years. In 2010, he shut down the $12 billion hedge fund Duquesne Capital Management and refunded the clients.Notably, Druckenmiller ranked position 167 in Forbes 400 2020. next Share:
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