Hedge Fund Manager Stanley Druckenmiller Latest To Laud Bitcoin, Who Will Be Next?
Billionaire hedge fund manager Stanley Druckenmiller is the latest big name legacy investor to join the Bitcoin ranks.
The news that Druckenmiller is long Bitcoin is significant, and according to Real Vision CEO, Raoul Pal, ‘it should open the doors for more funds and endowment operators to follow suit.’
Druckenmiller was speaking on CNBC when he admitted hodling Bitcoin and gold, which the legendary investor admitted having considerably more of.
In the interview, the hedge fund manager said he owns some Bitcoin and that he is betting on it going much higher.
‘If the gold bet works, the Bitcoin bet will work better,’ said Stanley Druckenmiller. ‘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 admitted to being unsure whether Bitcoin will actually become a store of value, but said Bitcoin’s considerable fanbase amongst the millennials and the entire West Coast fintech meant it had to be taken seriously.
‘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,’ said the hedge fund manager who also admitted to shorting the US Dollar.
Like Stanley Druckenmiller, Bill Miller Recently Sang Bitcoin’s Praises
The news that Stanley Druckenmiller is long Bitcoin comes just days after legendary value investor, Bill Miller declared his bullish sentiment on the same channel.
The founder, chairman and CIO of investment firm Miller Value Partners said he believed that ‘every major bank, every major investment bank, every major high net worth firm is going to eventually have exposure to Bitcoin.’
Miller’s opinion on Bitcoin didn’t exactly shock anyone. The value investor has been into the Bitcoin space since 2013, calling the leading cryptocurrency an ‘insurance policy against inflation’ back in 2017.
Many Bitcoiners Predicted A Bull Run, But Not Everyone’s Convinced
It’s no coincidence that these leading investors are on the bullish case for Bitcoin. After a year-long bear market in 2018, we have seen Bitcoin almost x5 since the December 2018 lows.
With the supply shock taking its routine 50% cut due to the Bitcoin halving, a bull run and positive moves in the Bitcoin price have been predicted by many in the Bitcoin space.
There are still many who doubt Bitcoin from the legacy world, such as Doctor Doom Nouriel Roubini, gold bug Peter Schiff, and legendary investors Warren Buffett and Ray Dalio to name a few.
But like Stanley Druckenmiller, Paul Tudor Jones, Bill Miller and others they will come around. Maybe. Not that it really matters, but who might be next?
After Stanley Druckenmiller, Who Will Be Next To Drop The Orange Pill?
Outspoken economist Nouriel Roubini, also known as Dr Doom in the Bitcoin space, is a long-standing critic of Bitcoin.
Professor Roubini, who foresaw the financial crisis, has called Bitcoin ‘overhyped’ and labelled it a ‘cesspool’ in the past, and even claimed it to be the ‘mother and father of all bubbles.’
However, recently Dr Doom appeared to be coming around, when he admitted that he now thinks Bitcoin as a possible ‘partial store of value’ and spoke highly of its decentralized nature and secure algorithm that ensures it cannot be debased.
It’s quite a turnaround from Nouriel Roubini, but I think he’s still has a long way to go before admitting he’s a Bitcoiner.
Likewise Peter Schiff. The gold bug is arguably Bitcoin’s number one antagonist, and is regularly tweeting his sentiments against Bitcoin.
Schiff, who is the CEO of Schiff Gold, has a lot to lose if Bitcoin takes value from his beloved metal and is highly unlikely to reform.
Shciff is constantly disparaging Bitcoin and claiming the end is nigh. But the gold bug has admitted he wishes he’d have bought some Bitcoin at $10 when he first heard of it.
If Schiff had used 100g of gold to buy Bitcoin back then, he would have enough to buy back 15 tonnes of gold today. Maybe that’s why he hates on Bitcoin so much? Either way, he’s unlikely to turn.
Peter Schiff and Nouriel Roubini are big characters, but they have little clout or standing compared with the likes of Stanley Druckenmiller, Paul Tudor Jones or Bill Miller.
But if there’s one person most Bitcoiners would like to give the orange pill to it would be billionaire investor, Ray Dalio.
The Bridgewater Associates CIO is one of the most respected investors alive, and every word he says reverberates around the investing world.
Dalio hasn’t spoken well of Bitcoin in the past, however, but his belief that ‘cash is trash’ resonates strongly with Bitcoin’s philosophy.
Like all other defamers, Ray Dalio has called Bitcoin a bubble, and earlier this year he said Bitcoin as neither a medium of exchange nor a store of value, when asked about its strengths as a currency.
‘There’s two purposes of money, a medium of exchange and a store hold of wealth, and Bitcoin is not effective in either of those cases now,’ said Dalio while adding the volatility was enough to put off any serious investor.
So, it seems like Ray Dalio is unlikely to change his mind anytime soon. Then again, stranger things have happened.
Many Billionaire Investors Have Exposure To Bitcoin, It’s Just A Matter Of Time Before They All Have
There are many billionaire converts from the financial and tech world who realise the possibilities of Bitcoin. Stanley Druckenmiller is just the latest name, and won’t be the last.
It’s become a cliché, but we are so early in the life cycle of Bitcoin that legendary investors are only just coming around to it.
The days of the Wild West are gone, and the infrastructure to entice these individuals is there now. Investment funds, ETPs, and legacy giants like Fidelity now offering Bitcoin custody solutions. It’s all falling in place.
Many Bitcoiners say, ‘Bitcoin isn’t for Wall Street, it’s for the people,’ but the truth is Bitcoin is for everyone. It’s open 24/7/365 and any individual can buy some in pretty much every country.
I just hope all my friends and family hear what Stanley Druckenmiller and others are saying before the likes of Nouriel Roubini and Peter Schiff wake up.
Author: Tommy Limpitlaw
How long does it take to mine 1 Bitcoin?
On average, the time it takes for miners to mine Bitcoin is 10 minutes. But they don’t just mine 1 BTC. Mined Bitcoins are created with every new block and these produce the Bitcoin block reward which at the moment is 6.25 BTC, so you could say it takes less than 2 minutes to mine each Bitcoin.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis.
Where can I buy Bitcoin in India?
There are several exchanges operating in India, but there are some suspect platforms so be careful. However, the most recommended exchanges are Kraken or Blockfi. Or you can buy Bitcoin from Bitcoin marketplaces, such as LocalBitcoins or Paxful. All of these exchanges and marketplaces are global with high liquidity and excellent customer service. Feel free to read the reviews of each one. Also, check out our How To Buy Bitcoin In India article.
What price will Bitcoin reach?
There have been many Bitcoin price predictions ranging from $0 to tens of million per BTC. But the truth is, nobody knows for sure. However, it is the soundest and hardest money ever created. Many say it is digital gold, but I believe in the digital age, it is more useful than gold. So, let’s say Bitcoin reaches the market cap of gold, which is believed to be $10 trillion, each Bitcoin would be worth $500,000. Is that reachable? Absolutely! Will it be plain sailing? Absolutely not!