Many analysts and investors have been left in awe of Bitcoin after its recent price rally. With the chances of more gains coming, many have once again began to compare the leading cryptocurrency to gold. The latest in the series of Bitcoin bulls is Stanley Druckenmiller, American hedge fund manager and billionaire. Earlier this week, he spoke with the CNBC and praised Bitcoin for the resilience it has shown. He also added that Bitcoin was on the fast track to dethroning gold and becoming the top alternative asset. The hedge fund billionaire also disclosed that he had recently bought a significant amount of Bitcoin, although he still had more gold in his portfolio, as opposed to the leading digital asset.
He said that Bitcoin could become an asset class that would be a lot more attractive to the new West Coast Money and millennials as a store of value. According to him, the asset has existed for almost 13 years and it is picking up more stabilization with each passing day and becoming a brand. As far as his own rationale for buying Bitcoin is concerned, Druckenmiller said that Bitcoin had a good chance of overcoming gold. He highlighted some of the benefits of the pioneer crypto over gold, including its divisibility and higher liquidity.
The comments made by the billionaire are a far cry from a couple of months ago, when he had criticized Bitcoin and claimed that it didn’t have any value. According to a report by Bloomberg, Druckenmiller had spoken at New York’s Economic Club that he wouldn’t be interested in spending any part of his impressive $4.4 billion wealth in an asset like Bitcoin. At that time, he had said that he couldn’t understand why the crypto had any value due to which he wasn’t interested in taking up any positions relating to it.
Now, when the industry is ready to make a record in the next couple of months, Druckenmiller seems to have changed his stance and has joined the Bitcoin bandwagon. His is the latest name in the finance industry who believe that Bitcoin could replace gold as the top alternative asset. Earlier this month, JPMorgan, the investment banking giant, had said that Bitcoin’s adoption in the future would increase due to a surge of institutional investors in the market. The company said that Bitcoin was already enjoying a very impressive streak, which began in the middle of the previous month, after the announcement by top payment processor PayPal about crypto integration.
According to JPMorgan, such moves would only draw more attention towards Bitcoin, a phenomenon that could certainly benefit the asset in the future. Analysts also highlighted that Bitcoin is rallying at a time when gold remains stagnant. As proof, the modest outflows experienced by the gold-based exchange-traded funds (ETFs) in October were highlighted. These analysts are of the opinion that the contrasting performances of these assets could indicate that investors might be leaving gold in order to join the ranks of Bitcoin investors.