The Chief Investment Officer and Chairman of the Duquesne Family Office, Stanley Druckenmiller, said cryptocurrencies pose a danger to the world’s reserve currency- the dollar. He indicated that the USD’s crypto-based record-keeping tool could serve as a reserve currency in a CNBC interview.
He believes crypto is solely responsible for the Federal Reserve Chairman Jerome Powell, and other central bank heads losing confidence with loose monetary policies.
Billionaire hedge fund manager Druckenmiller had projected that the US dollar could be replaced as the world’s reserve currency by a crypto-based ledger system.
If the dollar were to be replaced, the Hedge Fund CEO observed that it will be some ledger system created by some Stanford or MIT kid or some other tech school that has never even existed before, that might overtake the dollar worldwide.
Bitcoin As a Problem-Solving Tool
“Cryptocurrency is often sold as a buffer against inflation,” according to Druckenmiller. In his words
I said it was a problem-solving approach five or six years ago. That’s why, since we still have the dollar, I didn’t participate in the first wave of cryptocurrency. What are we looking for?
However, he expressed skepticism about the new financial stimulus:
Well, the issue was easily identified. It’s central bankers like Jerome Powell from around the globe. There is a loss of belief. What a tangle for a central case answer, he said.
He also revealed that he made some investment in bitcoin a few months ago and did not anticipate it to be overtaken by other investments.
Since Bitcoin has been around for 14 years and there is a finite number of it, it will be incredibly challenging to dislodge it as a store of value.