Billionaire hedge fund manager Stanley Druckenmiller has reportedly cast his predictions for the potential of a crypto-derived ledger network, taking the place of the U.S. dollar, to function as an international reserve currency.
Specifically, The hedge fund manager reportedly claimed that if discussing a possible alternative taking the place of the U.S. dollar, it “would be some kind of ledger system invented by some kids from MIT or Stanford or some other engineering school that hasn’t even happened yet, that can replace the dollar worldwide.”
His remarks, delivered via an interview with CNBC’s Squawk Box, reportedly claimed that crypto is normally advertised as a hedge against inflation, with its relevance increasing in recent times.
“Well, you probably don’t remember this joke, but five or six years ago, I said that that crypto was a solution in search of a problem. And that’s why I didn’t play crypto the first wave because we already have the dollar. What do we need to look for?”
“Well, the problem has been clearly identified. It’s Jerome Powell and the rest of the world, central bankers. There’s a lack of trust. So sort of groping for an answer for a central case.” He additionally shared that the existing financial stimulus was a problem.
Druckenmiller reportedly made investments in Bitcoin in early 2021, and is confident that the chances of Bitcoin being overtaken by any different virtual coins, as the top store of value assets, are small.
“It’s going to be very hard to unseat Bitcoin, as a store of value asset, because it has a 14-year-old brand, it’s been around long enough, and obviously, there’s a finite supply.”
Druckenmiller further revealed that Ethereum is taking the pioneering position in designing smart contracts, he does not forecast its domination when it comes to day-to-day transactions.