When billionaires and investing legends like Warren Buffett call Bitcoin “rat poision” it is a clear indicator that they have not spent the time to research the fundamentals of cryptocurrency.

However, some of the big names on Wall Street have taken the time to understand crypto and the potential it has to offer.

Stanley Druckenmiller was recently interviewed by John Collinson of Stripe for the 2022 Sohn Investment Conference.

This conversation contained timeless investment principles and valuable insights into the future of blockchain technology.

Who is Stanley Druckenmiller?

Stanley Druckenmiller is a hedge fund manager and former chairmen and president of Duquesne Capital, a hedge fund he founded in 1981.

Druckenmiller also managed the Quantum Fund for George Soros from 1988 to 2000.

His net worth is estimated to be $6.8 Billion making him one of the most successful hedge fund managers of all time.

At the ripe age 69, it wouldn’t be surprising if Druckenmiller was a critic of new and emerging technologies such as blockchain.

But instead Druckenmiller is actually a proponent of crypto and provided some bullish opinions on the future of blockchain technology in his interview with John Collinson.

Crypto Will be a Disruptor

When asked about the future of crypto, Druckenmiller stated:

“I will be very surprised if blockchain isn’t a real force in our economy in 5–10 years from now.”

He also mentioned that blockchain technology will cause a significant amount of disruption to current financial companies.

Druckenmiller has made his fortune based on accurately predicting the future of the economy and betting on that future.

Where to Focus as a Young Investor

Later in the video Collinsion asked if a “young Stanley” would be diving into crypto more energetically.

Druckenmiller confirmed he would but also mentioned:

I’m probably too old to compete intellectually with the young people in the space but I’m certainly monitoring it.

There is no doubt early adopters and tech-native investors have an advantage when it comes to blockchain and Web3.

If you are reading this newsletter, chances are you’re an early adopter which gives you an edge in this space.

Investing Principles.

The majority of the interview was focused on Druckenmiller’s current macro outlook on the economy and his investment philosophy.

Anytime a legend provides their insights on how they became successful, it is a good idea to listen.

Druckenmiller provided two nuggets in particular that can certainly be applied to cryptocurrency investing.

Don’t Invest in the Present

The worst thing you can do as an investor is make investment decisions based on current market conditions.

The present does not move the stock (token) price. Change moves the price.

Envision a different world 12–18 months from now and where things will trade at that time. Invest accordingly.

This strategy takes time and practice to perfect. But it is incredibly powerful.

What will the crypto landscape look like a year from now? Will the alt coin that is hot right now even be around in 12–18 months? Maybe, maybe not.

Invest for the future, not the present.

Know Your Biases

Your job as an investor is to know you biases. You need to be able to manage these biases and understand that they exist.

They best way to accomplish this is by documenting everything.

Create a trading journal to document how you view the markets and track your decision making.

The DeFi Edge provides a simple framework you can use.

Some daily habits I’m incorporating:

• Go for walks 2x a day
• Eating meals w/o staring at my phone
• Write a Crypto journal entry
• Write down 3 things I’m grateful for

Good habits compound over time.

Want to join?

— Edgy – The DeFi Edge (@thedefiedge) April 3, 2022

Over time you will begin to notice trends and biases in your thinking.

Once you can spot these biases you can start working towards eliminating your blind spots and overcoming your biases.

Final Thoughts

Stanley Druckenmiller has a bullish outlook on the future of crypto.

But more importantly, his investing principles that made him a billionaire are timeless and can be applied to cryptocurrency investing as well.

Despite current market conditions, the future is bright for DeFi and crypto as a whole.