While Druckenmiller does not currently own any Bitcoin, he expressed his belief that he should.
Druckenmiller, a billionaire investor, shared his views on Bitcoin in an interview on October 30, drawing comparisons between Bitcoin and gold as stores of value.
He, at 70 years of age, admitted to owning gold and expressed his surprise at Bitcoin’s rise. He acknowledged that younger generations view Bitcoin as a store of value due to its ease of use.
He stated, “17 years, to me, it’s a brand. I like gold because it’s a 5,000-year-old brand.” Druckenmiller concluded, “So, I like them both. I don’t own any Bitcoin to be frank, but I should.”
“I could see cryptocurrency having a big role in a Renaissance because people just aren’t going to trust the central banks.”
Notably, Druckenmiller had previously held Bitcoin but disclosed in a September 2022 interview that he had sold his holdings due to the tightening measures imposed by central banks.
He did, however, foresee a flourishing digital asset sector if people lose faith in the central banking system, citing the example of the Bank of England following the British pound’s decline in mid-2022.
Druckenmiller, the founder of Duquesne Capital Management in 1981, achieved an impressive average annual return of 30% during his tenure and never experienced a down year.
His investment strategy involved holding a group of stocks long and short while using leverage to trade futures in varying market conditions.
Additionally, Druckenmiller has expressed admiration for blockchain technology and suggested that a ledger-based system could potentially replace the U.S. dollar as the world’s reserve currency in the future.
In 2021, he likened Ethereum to “Myspace before Facebook” and predicted that Ether (ETH) could eventually surpass Bitcoin (BTC).
Bitcoin has garnered increased support from Wall Street firms in the past year, notably evidenced by a surge in proposed Bitcoin exchange-traded fund (ETF) filings by major financial institutions.
However, the cryptocurrency industry continues to face criticism from well-known veteran investors such as Warren Buffet and Charlie Munger, who have long referred to Bitcoin and cryptocurrencies as “rat poison” and an asset class with no intrinsic value.
“I wouldn’t pay $25 for all the bitcoin in the world.” – Warren Buffet