Famous billionaire and hedge fund manager, Stan Druckenmiller, reveals his choice of assets in a bull and bear market. The fund manager disclosed that he would go for Bitcoin over gold in an inflationary bull period.
However, in a bear market situation, Druckenmiller prefers gold over Bitcoin. Meanwhile, the billionaire brings up the argument about Bitcoin as a hedge against inflation.
The flagship cryptocurrency is the only digital asset priced as a direct competitor to gold. Many industry experts believe Bitcoin has what it takes to hedge against inflation over gold. In the meantime, the jury is still out to ascertain Bitcoin’s status as an inflationary hedge.
Druckenmiller Speaks on Cryptocurrency, Blockchain, and Bitcoin
In an interview with Sohn Conference Foundation, the experienced fund manager shared his opinion on Bitcoin and the general crypto market. Druckenmiller talked about why Bitcoin is the right asset to handle inflation.
He added that the current monetary policy contributes to global inflation and, to some extent, instability in the crypto market. Druckenmiller said that in the future, if there is going to be a bull trend, Bitcoin is the perfect asset.
However, if, on the contrary, there is a bear market for other assets, then gold will be a good hedge for that.
He noted that he is confident about his views because he has been observing market trends for a long time. Druckenmiller added that he has begun to believe his observation of the happenings in both markets.
Moreover, the billionaire assumes that if there is stagflation and a bear market situation, he will want to own gold. According to the billionaire, he will hold this assumption in the future based on 85% of his observations.
The fund manager commented on investing in cryptocurrency by citing the correlation between the crypto market and Nasdaq. Druckenmiller disclosed that based on his signals, both markets currently operate similarly.
However, many in the industry first pointed out the correlation after the hike in interest rates by the Federal Reserve. Since the Fed streamlined the crypto industry alongside the likes of Nasdaq, it ceased to be on a different path.
Druckenmiller’s View on the Future of Digital Assets
Commenting on the future of cryptocurrency, the billionaire stated that it would be surprising if the blockchain were not a force to reckon with in the next few years. Blockchain technology can be a disruptor of the current ways of doing things.
He added that companies founded between now and the next few years will do well. They will be able to challenge the traditional financial firms and displace much of the conventional stuff in the sector.
He believes that the industry is yet to reach its full potential and that there will be a radical shift in the future.
Druckenmiller is an experienced industry player and the CEO of the Duquesne Family Office. He is also a former director at Soros Fund Management. Druckenmiller’s net worth currently stands at $6.8 billion.