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Why Druckenmiller and Tudor Jones changed their minds about Bitcoin

In 2017, Bitcoin reached a record high of $ 20,000. In 2018, the price of cryptocurrency fell by more than 50%. What happened later caught the attention of two of the world’s biggest investors, Stan Druckenmiller, founder of Duquesne Capital, and Paul Tudor Jones, founder of Tudor Investment Corporation.

Druckenmiller has been interviewing several media outlets and analyst John Street Capital compiled through your Twitter. The legendary investor expressed concern about the current exercise of policy by central banks around the world. He believes that these institutions are making fiat money “more questionable”.

For the first time, Druckenmiller revealed that during a phone call with Tudor Jones, he learned a fact that made him change his mind about Bitcoin and the potential of crypto to become a hedge against central bank inflationary policies. Tudor Jones asked him the following:

“Did you know that when Bitcoin went from $ 17,000 to $ 3,000, 86% of the people who owned it to $ 17,000 never sold it?” Druckenmiller replied: Well, that was huge in my mind. So, here is something with a finite offer and 86% of the owners are religious fanatics.

That belief, the diamond hands of Bitcoin hodlers and the economic outlook forced Druckenmiller and Tudor Jones to consider whether they should buy Bitcoin. As they later revealed, they became BTC holders in 2020.

Bitcoin, the new gold for younger generations

Bitcoin has additional features that the legendary investor used to measure its potential. Tudor Jones told Druckenmiller that cryptocurrency has become a brand after 13 years since its inception. The cryptocurrency achieved this without a marketing team or a CEO to command this strategy, it is driven by the owners, its network effect and the guarantee of its limited supply.

The founder of Duquesne Capital has only one regret when it comes to BTC, like many investors, he feels he should have bought more.

“I tried to buy $ 100 million of BTC for $ 6,200. It took me 2 weeks to buy $ 20 million. I bought it for about $ 6,500, I think. So, like an idiot, I stopped buying it. ”

Druckenmiller added that there is a generational shift led by younger investors. They regard Bitcoin as Druckenmiller saw gold, a store of value, safe against fiat currencies.

When comparing Ethereum and Bitcoin, Druckenmiller believes that the latter won the “game of the reserve of value”. He based his opinion on 3 points, BTC has a brand that has been around for 13 years and a finite offer. Legendary investors say ETH could be the “MySpace” of the crypto industry.

“I am a little more skeptical about your ability to maintain your position. It reminds me a little of MySpace before Facebook. Or perhaps a better analogy is Yahoo before Google emerged. Google wasn’t much faster than Yahoo, but it didn’t have to be. It just needed to be a little faster and the rest is history. ”

He predicts more appreciation for the BTC price if the US Federal Reserve and its president, Jerome Powell, “continue to act as if they are acting.” As long as this continues, BTC and Ouro will have the wind to continue rising.

At the time of writing, BTC was trading at $ 36,967, with small gains on the daily chart. On the weekly and monthly chart, BTC has a profit of 5.9% and a loss of 35.9%, respectively.

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