Stanley Druckenmiller Owns Bitcoin and Says Why It Could Be a Better Investment than Gold
Stanley Druckenmiller revealed earlier this week that he owns Bitcoin and explained why it could be a better investment than gold.
The famed investor founded Duquesne Capital in 1981. He managed money for George Soros as the lead portfolio manager for the Quantum Fund for several years. He and Soros made massive profits betting against the British pound in 1992.
In an interview with CNBC on Monday, Druckenmiller 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.”
He elaborated saying that Bitcoin has “been around for 13 years and with each passing day it picks up more of its stabilization. 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.”
Another legendary investor, Bill Miller of Miller Value Partners told CNBC last last week that “the risks of Bitcoin going to zero are lower than they’ve ever been before” and predicted more institutional investment in the cryptocurrency. “The Bitcoin story is very easy. It’s supply and demand,” Miller said. “Bitcoin’s supply is growing around 2.5% a year and the demand is growing faster than that.”
Miller, who serves on the investment committee for the endowment of Johns Hopkins University, said the endowment’s chief investment officer told him that “everybody is going to want to own at least some bitcoin because of its asymmetric properties.”
It seems with a wave of legendary institutional investors seeing the value around Bitcoin, it is only a matter of time before institutions start arriving in full force.
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