Billionaire and hedge fund manager Stanley Druckenmiller predicts that the ledger system derived from cryptocurrency may replace the U.S. dollar as the global reserve currency.
The billionaire pointed out that if there is an alternative to the U.S. dollar, “it will be a ledger system invented by some students at MIT, Stanford University or other engineering schools, which can replace it on a global scale. US dollars.”
He made this remark in an interview with CNBC column “Squawk Box”. Druckenmiller pointed out that cryptocurrencies are often promoted as a means to hedge against inflation, and this has recently become more important:
“You may not remember, five or six years ago, I made a joke, cryptocurrency is a solution to trouble yourself. That’s why I didn’t invest in cryptocurrency in the first wave of craze, because we already have U.S. dollars. . What else do we need?”
But he went on to add that continued fiscal stimulus is a problem: “This problem has been made clear. It is about Fed Chairman Jerome Powell (Jerome Powell) and the governors of central banks around the world. It is a lack of trust. “
According to reports, Druckenmiller invested in Bitcoin earlier this year. He told “Squawk Box” that he believes that Bitcoin is unlikely to be replaced by other cryptocurrencies as a top store of value asset:
“Bitcoin’s status as a store of value asset will be difficult to shake, because it has a history of 14 years, has existed for long enough, and obviously, its supply is limited.”
Druckenmiller pointed out that although Ethereum is leading the way in building smart contracts, he does not believe that Ethereum will dominate daily transactions. He believes that the next generation of developers may improve current blockchain technology and abandon current solutions.
He said: “Existing projects in this field will face cruel competition. That’s why I believe that in the fields of payment systems, commerce, etc., it is too early to determine who is the winner.”
However, Druckenmiller does not believe that other fiat currencies will replace the U.S. dollar.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.