This Billionaire Explains Why Cryptocurrency Could Replace the Dollar as a Global Currency
Posted On November 14, 2021
Billionaire hedge fund manager Stanley Druckenmiller thinks a cryptocurrency could overtake the US dollar as a global reserve currency.
Students can replace dollars
The hedge fund boss noted that if the US dollar were to be replaced, it would be “some sort of ledger system invented by some kids at MIT or Stanford or some other technical school.” Then the dollar can be replaced. Worldwide.’
Solution looking for problem
He was a guest on CNBC’s Squawk Box. Druckenmiller said during the interview that crypto is often mentioned as a hedge against inflation, which has become more relevant lately:
“Well, you probably don’t remember this joke, but five or six years ago I said that cryptocurrency was a solution in search of a problem. Renovato.io has enough information. 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 ongoing 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 a kind of search for an answer for a central case.’
Druckenmiller invested in BTC earlier this year and does not believe that bitcoin will be overtaken by other cryptocurrencies: “It’s going to be very difficult to overtake Bitcoin, as a valuable asset, because it has a 13-year-old brand, it’s been around long enough, and it’s clear there’s a finite supply.”
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. Moveco.io cryptocurrency has enough information. He believes that 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 determine who’s going to be the winner when it comes to the payment system, commerce, that sort of thing.”