Billionaire Stanley Druckenmiller believes that in the future, some cryptocurrency-based distributed financial system could replace the US dollar as the world’s reserve currency.
Stanley Druckenmiller: This could be the beginning of the end of the dollar
Hedge fund manager and billionaire Stanley Druckenmiller believes that the cryptocurrency-based system will replace the US dollar as a global reserve currency. He made it clear that he meant “Some accounting system invented by people from MIT, Stanford or another engineering school that has not yet been created, [ale] that could replace the dollar around the world. “
During the interview he gave Squawk Box CNBCDruckenmiller noted that cryptocurrencies are often promoted as a hedge against inflation that has become more relevant recently. He claimed that a few years ago he did not want to invest in BTC because he saw no use for it. Now, however, he is of the opinion that the problem is the continued financial incentives from the government.
– Well, the problem has been clearly identified. This is Jerome Powell and the rest of the world and the central bankers. There is no trust. So I am looking for a solution to this issue – he explained.
A new cryptoinvestor
Druckenmiller reportedly invested in Bitcoin earlier this year. Now, he said, it is unlikely that any cryptocurrency will surpass Bitcoin as the largest value store in the blockchain market.
– It will be very difficult to outdo Bitcoin as a store of value because it’s something with a long brand name, it exists long enough and of course there is a limited supply – added.
Druckenmiller noted that while Ethereum is a leader in the smart contract building market, it does not believe ETH will become a rival to BTC. He believes that the next generation of developers is likely to improve the current blockchain technology, leaving the current solutions behind. He added that the competition “Will be brutal”.
Druckenmiller also entered the dollar and fiat currencies. In his opinion, apart from the dollar, no fiat currency will become a global currency. As he explained, “Europe is a complete mess. “ So this disqualifies the euro. Maybe the rules of the game will change the yuan? The billionaire doesn’t believe it either.
– Who will trust the Chinese? – He said.