Billionaire Stanley Printmiller shared how he got into Bitcoin, and it was made up of famous hedge fund manager Paul Tudor Jones. As Bitcoin went up, Druckermiller said, “I just couldn’t stand it going up and I didn’t own it … I felt like an idiot.”
Paul Tudor Jones, Stan Druckermiller and FOMO
Renowned investor Stan Druckermiller shared how he got into Bitcoin in an interview with The Hustle published on May 26th. He also shared his views on Ethereum and Dogecoin, as Bitcoin News previously reported.
Druckermiller founded Duquesne Capital in 1981. He was senior portfolio manager for the Quantum Fund until 2000, managing money for George Soros. He and Soros made massive profits in 1992 betting against the British pound.
As Bitcoin price soared from $ 50 to $ 17,000, Druckermiller said, “I just sat there in horror and admitted,” I wanted to buy it every day. “The billionaire investor said:
It was going up and – although I didn’t think much about it – I just couldn’t stand it going up and not being mine. I had never owned it from $ 50 to $ 17,000, I felt like an idiot.
As the price of BTC fell to the $ 3,000 mark, two things happened that led Druckmiller to invest in the cryptocurrency.
The first was that he realized the problem that Bitcoin fixes. He said early on that “crypto was a solution to looking for a problem” without knowing what the problem was at the time. Then, “I found the problem,” he exclaimed, adding that “when we made the CARES bill and Chairman Powell started crossing all sorts of red lines about what the Fed does and doesn’t do would. “Druckermiller stated:
The problem was, Jay Powell and the world’s central bankers went insane, making fiat money even more questionable than it was when I used to own gold.
The second thing that convinced him to buy Bitcoin was a phone call from billionaire hedge fund manager Paul Tudor Jones. “I got a call from Paul Jones,” he recalls. Jones told him, “Do you know that 86% of the people who owned it at $ 17,000 never sold it when Bitcoin went from $ 17,000 to $ 3,000?
Druckermiller admitted, “It was huge for me. So here is something with limited supply, and 86% of the owners are religious zealots. I mean, who the hell thinks between $ 17,000 and $ 3,000? And it turned out that none of the – the 86% – were selling it. Add that to this new phenomenon of central bank craziness. “
While he was still debating whether to buy Bitcoin, the price skyrocketed to $ 6,000. Druckermiller then started buying:
I had to buy some just because these west coast kids are already worth more than me, and they’ll make a lot more money than me in the future. For some reason, if I don’t trust fiat currencies, they look at this thing the way I’ve always seen gold, which is a store of value.
The billionaire investor went on to describe the obstacle he faced while trying to buy BTC. “It’s funny. I was trying to buy $ 100 million bitcoin at $ 6,200. It took me 2 weeks to buy $ 20 million. I bought everything for $ 6,500, I think,” he recalls .
He thought it was “ridiculous,” considering it would have taken him two seconds to buy that much gold. Druckmiller then confessed:
So I stopped buying it like an idiot. The next thing I knew is that it was trading at $ 36,000.
Druckermiller went on to say, “I took my expense and then took some of it and I still own some of it.” He admitted, “My heart has never been there” and emphasized that he was “a 68-year-old dinosaur”. Nonetheless, he realized that “as soon as it started moving and these institutions started expanding it, I could see the old elephant trying to get through the keyhole and they couldn’t get through in time.”
In November last year, Druckermiller said that Bitcoin could be an attractive store of value that could beat gold. He also believes the US dollar is likely to lose its reserve currency status in 15 years. Jones also said last year that he sees massive benefits to Bitcoin, such as investing in the early Apple or Google companies. He went on to say, “I came to the conclusion that Bitcoin would be the best inflationary trade, the defensive trades you would make.”
What do you think of how Stan Druckermiller came to Bitcoin? Let us know in the comment section below.
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