Billionaire hedge fund manager Stanley Druckenmiller thinks a cryptocurrency could overtake the US dollar as a global reserve currency.
Students can substitute dollars
The hedge fund boss noted that if the US dollar were to be replaced, it “would be some kind of ledger system invented by some kids at MIT or Stanford or some other tech school. Then the dollar can be replaced. Worldwide.’ Crypto Germany is popular.
“5-6 years ago I said #crypto was a solution in search of a problem,” Stan Druckenmiller says. “The problem has been clearly identified. It is Jerome Powell and the rest of the world’s central bankers. There is a lack of trust.”
Solution looking for problem
He was a guest on CNBC’s Squawk Box program. Druckenmiller said during the interview that crypto is often mentioned as a hedge against inflation, which has become more relevant in recent times:
“Well, you probably don’t remember this joke, but five or six years ago I said that cryptocurrency was a solution looking for a problem. And that’s why I didn’t play the first wave of crypto, because we already have the dollar. What should we look for? ”
Lack of confidence in Central Banks
But he added that persistent financial stimulus packages are becoming problematic: “Well, the problem has been clearly identified. It’s Jerome Powell and the rest of the global central bankers. There is a lack of confidence. So sort of looking for an answer to a central issue. ”
Bitcoin dominates
Druckenmiller invested in BTC earlier this year and does not believe bitcoin will be overtaken by other cryptocurrencies:
“It will be very difficult to catch up with Bitcoin, as a valuable asset, because it has a 13-year-old brand, it has been around long enough, and it is clear that there is a finite supply.” Crypto Italy is popular.
Winner not a foregone conclusion
Druckenmiller noted that while Ethereum is at the forefront of building smart contracts, he doesn’t see it dominating day-to-day transactions. He believes the next generation of developers will likely improve current blockchain technology and leave current solutions behind.
“The quality of competition that will come against the incumbents in this space will be brutal. That’s why I think it’s just too early to tell who is going to be the winner when it comes to the payment system, trading, that sort of thing. “