Legendary fund manager Stanley Druckenmiller says that he is worried that within 15 years the U.S. dollar will lose its worldâ€™s reserve currency status. He said that crypto is a solution to the lack of trust in Fed Chairman Jerome Powell â€œand the rest of the worldâ€™s central bankers.â€ The billionaire investor further said that it will be very difficult to unseat bitcoin as a store of value.
Druckenmiller on USD Losing Reserve Currency Status and Difficulty in Unseating Bitcoin as Store of Value
Billionaire investor Stanley Druckenmiller talked about the U.S. economy, bitcoin, and cryptocurrencies in an interview with CNBC Tuesday. He said that he has â€œno doubt, none whatsoever, that we are in a raging mania in all assets.â€
Druckenmiller founded Duquesne Capital in 1981. He managed money for George Soros as the lead portfolio manager for the Quantum Fund until 2000. He and Soros made massive profits betting against the British pound in 1992.
He explained that the Fedâ€™s policies and heavy debts and deficits will threaten the dollarâ€™s status as the worldâ€™s reserve currency. â€œI canâ€™t find any period in history where monetary and fiscal policy were this out of step with the economic circumstances, not one,â€ he described, adding:
He also mentioned that five or six years ago, he said that â€œcrypto was a solution in search of a problem.â€ He emphasized: â€œThe problem has been clearly identified. It is Jerome Powell and the rest of the worldâ€™s central bankers. There is a lack of trust.â€
Druckenmiller explained that the ultimate solution could be â€œsome kind of ledger system invented by some kids from MIT or Stanford.â€ However, he conceded, â€œI donâ€™t know what it will be.â€
When asked specifically about bitcoin, Druckenmiller first noted that â€œIâ€™m a 68-year-old dinosaur.â€ Noting that â€œEthereum has the lead in terms of smart contracts, in terms of commerce,â€ he then opined:
In conclusion, he clarified that it is too early to know which currency will replace the dollar, but reiterated that â€œIt will be tough to unseat bitcoin.â€
What do you think about Stan Druckenmillerâ€™s comments about the USD and bitcoin? Let us know in the comments section below.
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