Bitcoin, Stanley Druckenmiller
Billionaire money manager Stanley Druckenmiller, isn’t sold on bitcoin. | Source: REUTERS/Brendan McDermid

By CCN: Nothing will get billionaire investor Stan Druckenmiller interested in bitcoin. Specifically, Druckenmiller is not sold on the cryptocurrency being a store of value, according to Bloomberg. In his view, however, this stance on Bitcoin does not make him a technophobe:

I don’t think I’m a neanderthal, which is what I’ve been called when I’ve said I didn’t want to own Bitcoin.

Interestingly, at a time when speculation was rife that last month’s Bitcoin rally was to some extent being caused by the U.S.-China trade war, Druckenmiller was then piling into U.S. treasuries. After U.S. president Donald Trump declared tariffs would be raised on Chinese imports on May 5, bitcoin appreciated by over 25 percent in the ten days that followed.

bitcoin
Bitcoin price chart | Source: Yahoo Finance

Trump tweets, bitcoin rises, druckenmiller buys treasuries

As billions flowed into bitcoin and other cryptocurrencies, Druckenmiller – worth an estimated $5 billion – was purchasing treasuries following the Trump tweet sent on May 5:

When the Trump tweet went out, I went from 93% invested to net flat, and bought a bunch of Treasuries. Not because I’m trying to make money, I just don’t want to play in this environment.

In the tweet in question, Trump had indicated that tariffs on Chinese goods would rise from ten to 25 percent.

Trump
Trump tweet on increasing tariffs | Source: Twitter

With the U.S. and China currently in a standoff regarding trade talks, Druckenmiller sees the only reason for Trump to reconsider his stance would be if the economy weakened. Such an eventuality of the economy softening would also potentially force the Federal Reserve to cut rates.

Druckenmiller not betting on trump winning 2020

Though Druckenmiller does not advocate removing Trump from office, he does not expect him to get re-elected next year. Regarding the constitutionally-mandated efforts to remove Trump from office, Druckenmiller thinks they would do more harm than good.

Besides skepticism over Bitcoin’s store-of-value role, Druckenmiller has also questioned its ability to be a medium of exchange. In December 2017, Druckenmiller argued that Bitcoin couldn’t serve as a means to transact with its ‘kind of volatility’.

Druckenmiller has, however, not kept away from the cryptocurrency field entirely. Last year he invested in the Basis stablecoin project alongside Bain Capital Ventures, Google’s VC unit and Andreessen Horowitz.

Basis
Stan Druckenmiller invests in Basis stablecoin project | Source: Twitter

This article was edited by Samburaj Das.

You May Also Like

3 Key Things the Mainstream Financial Media Is Missing About Bitcoin

Mainstream media is out spreading fear, uncertainty, and doubt (FUD) about bitcoin…

Ethereum’s Vitalik Buterin to Sign ‘Free Virgil Griffith’ Petition Following FBI Arrest

Ethereum co-founder Vitalik Buterin is signing a petition to free estranged Virgil Griffith who was arrested by the FBI on thanksgiving.

Analyst Explains Why Bitcoin Price Could Plummet to $2,020 in 2020

An analyst says bitcoin could crash to $2,000 to $3,000 range as…

VeChain (VET) Jumps a Whooping 26%, Thanks to an Iconic Retro Game Remake

Contrary to the rest of the crypto market VeChain (VET) is up 26% today and showing no signs of slowing down, but what’s driving the token?

Bitcoin Price Suffered 31% November Slump But a Hostile China Boosts Outlook

Bitcoin price dropped by 31% since October. Yet, Spencer Bogart sees strengthening fundamentals pushing BTC up in the medium-term.

Limited Edition Bitcoin Watch Beckons Mt. Gox Remnants

A limited edition bitcoin watch with a widely known Mt. Gox wallet was spotted in Abu Dhabi. Is the royal family linked to the scandal?