Chairman and CEO of Duquesne Family Office LLC, Stan Druckenmiller was previously a managing director at Soros Fund Management. At a point in his career at Soros Fund, he was managing assets worth $22 billion. He also has a personal net worth of around $6 billion. In a Sohn Conference Foundation interview, Druckenmiller shared his view on cryptocurrency and Bitcoin investing.
He said that he has started believing in crypto and Bitcoin since he expects a highly inflated bull market. He said he would own Bitcoin over gold in such a market scenario to hedge his positions. However, he said if the markets are bearish in a recessionary environment one would want to own gold.
“If it’s in a bull phase, you want to own bitcoin. If it’s in a bear phase for other assets, you want to own gold.”
To taunt the regulators, the billionaire said that inflation would only be the case if there is an “irresponsible monetary policy.” He recommends to own gold in a stagflation.
“If I thought we are going to have a bear market — you know stagflation-type things — I would want to own gold.”
He claimed that there is a strong correlation between the Nasdaq and crypto and a correlation coefficient that could be getting closer to one.
“There certainly seems to be a strong correlation between crypto and the Nasdaq.”
When asked about the future of cryptocurrencies, the billionaire said “I will be very surprised if blockchain isn’t a real force in our economy — say five years from now to 10 years from now — and not a major disruptor.”
He says that crypto companies which are today at an early stage must do well in the near future as adoption grows. However, challenges will be similar to those faced by financial companies currently. This will cause a lot of ‘disruption,’ as per Druckenmiller.
He concluded by saying that he finds crypto very interesting, and he jokingly said that he is too old to compete with the young minds in the space.