Billionaire investor Stanley Druckenmiller praised Bitcoin (BTC) for establishing a "brand" over the last decade and a half. Despite not owning any Bitcoin himself, Druckenmiller admitted that he should.
In an interview with hedge fund manager Paul Tudor Jones on October 30, Druckenmiller made comparisons between Bitcoin and gold as a store of value.
The appeal of Bitcoin for the younger generation
"I’m 70 years old, I own gold. I was surprised that Bitcoin got going, but you know, it’s clear that the young people look at it as a store of value because it’s a lot easier to do stuff with. To me, it’s a brand. I like gold because it’s a 5,000-year-old brand," he explained.
"So, I like them both. I don’t own any Bitcoin to be frank, but I should."
Druckenmiller previously held Bitcoin but sold it in September 2022 when central banks started imposing tightening measures.
He did, however, mention that the digital asset sector could thrive if people lose faith in the central banking system. He cited the example of the Bank of England after the British pound plummeted in mid-2022.
"I could see cryptocurrency having a big role in a Renaissance because people just aren’t going to trust the central banks."
A legendary investor with a successful track record
Druckenmiller founded Duquesne Capital Management in 1981 and achieved an average annual return of 30% without experiencing a down year. His investment philosophy involved holding a group of stocks long, a group of stocks short, and using leverage to trade futures in rising and falling markets.
He has also been a vocal supporter of blockchain technology. Druckenmiller predicts that a ledger-based system could eventually replace the U.S. dollar as the world’s reserve currency.
In 2021, Druckenmiller compared Ethereum to "Myspace before Facebook" and predicted that Ether (ETH) would eventually surpass Bitcoin.
Bitcoin gaining acceptance from Wall Street
Over the past year, sentiment towards Bitcoin from Wall Street firms has become more positive. This is evident from a wave of proposed Bitcoin exchange-traded fund filings by major financial firms.
Despite this, the cryptocurrency industry still faces criticism from well-known veteran investors Warren Buffet and Charlie Munger. They have long referred to Bitcoin and cryptocurrencies as "rat poison" and an asset class that produces no value.
