Billionaire Stan Druckenmiller says he prefers Bitcoin over Gold in an inflationary bull market. On the contrary, he would want to have more Gold if it is a bear market. Stanley is the current chairman and CEO of Duquesne Family Office and former director of Soros Fund Management. His net worth is around $6.8 billion.
Stan’s views on cryptocurrencies
He was recently interviewed by Sohn Conference Foundation, where he shared his views on BTC and cryptocurrency investments. His idea for investment was very simple. Stan thinks that if inflation continues with bad monetary policies, then it’s best to own Bitcoin in a bull market and Gold in a bear market.
The reason behind this is how both these assets behave. Bitcoin has always been known to give very high returns, but at the same time, during bear markets, it pulls back very hard. On the other hand, Gold’s returns are average at best during bull markets, but it maintains its ground much better during bear phases.
Stan says the idea of owning Gold and Bitcoin depending on the market cycle is what he thinks based on his observation. He also said that there seems to be a strong correlation between Nasdaq and crypto.
The future of crypto and blockchain
Stan Druckenmiller thinks that crypto and blockchain are going to major in the next 5 to 10 years. And the companies that are founded during this period are also expected to do well. They will challenge the traditional finance companies and disrupt entire industries, believes Stan.
It’s pretty interesting to see veteran investors stay optimistic about crypto, unlike most others. Stan says he might not be able to compete intellectually with young people in this space, but he is monitoring it closely.
Bitcoin’s price action
Bitcoin is currently trading below $25,000, which is more than 60% below its all-time high. It shows how volatile the market is and that we are not in a bull market in this inflation phase. We must also note that even NASDAQ is 30% down from its highs which shows that cryptocurrencies are not the only market bleeding right now.
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