The value of any asset can collapse at any moment, so not only cryptocurrencies are in the bubble. Billionaire Stanley Druckenmiller expressed this opinion in a conversation with American investor Seth Klarman at the Boston Investment Conference, writes Bitcoin.com.
“Crypto, meme stocks, art, wine, equities […] This bubble is in everything, every asset on the planet,” Druckenmiller said. Thus, he noted that the current situation in the cryptocurrency market is not like the dot-com bubble. Which, according to him, has reached significantly fewer people than the digital asset industry today.
“That was a bubble in technology and, in some sense, a well-deserved bubble. Because the market figured out 20 years ahead of time the networking effect and that companies could come out of nowhere and have 2 billion customers,” the billionaire explained.
The low liquidity of Bitcoin
To Karman’s further question about undervalued sectors in the bubble, Druckenmiller replied that he does not know what value is. Moreover, he is sure that he cannot “can’t figure out what it is”.
Duquesne Family Office LLC is led by Druckenmiller as chairman and CEO. He formerly worked at Soros Fund Management as a managing director. Where he was in charge of funds with a total asset value of $22 billion. His personal net worth is $6.8 billion, according to Forbes Billionaires list.
Earlier in May, Druckenmiller complained about the low liquidity of the first cryptocurrency after the depreciation in 2020. Because of this, the billionaire stopped buying Bitcoin (BTC), after which the asset began to grow.
Recall that previously in October, the famous American investor Bill Miller advocated for Bitcoin. Legendary billionaire investor, in an interview with William Green, called Bitcoin digital gold and compared his bet on it to buying Amazon shares during the collapse of the dot-com bubble.
According to the billionaire, he purchased the tech giant’s securities at an average price of $17 more than 20 years ago. The first cryptocurrency cost him an average of $500 per coin, he said.
In 2017, the media reported that Miller holds 1% of his own funds in Bitcoin. Which he bought back in 2014. At the same time, his hedge fund with assets of $2.2 billion increased the share of cryptocurrencies in the portfolio to 50%.