The possibility of a crypto-derived ledger system overtaking the U.S. dollar as a global reserve currency has been forecasted by Billionaire hedge fund manager Stanley Druckenmiller
He said that 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, however it will be premised if there were to be a U.S dollar replacement.
Druckenmiller noted that crypto is often promoted as a hedge against inflation, which has become more relevant of late via a comment on CNBC’s Squawk Box.
According to the billionaire, he 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 and which was a statement he made ten years ago and maybe people no longer remember the joke.
But he went on to add that ongoing financial stimulus was an issue: “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.”
Druckenmiller reportedly invested in Bitcoin earlier this year and told Squawk Box that it’s unlikely that he believes it’s Bitcoin will be usurped by other cryptocurrencies as the top store of value asset:
“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 noted that while Ethereum is leading the way when it comes to building smart contracts, he does not see it dominating everyday transactions. He believes that the next generation of developers is likely to improve on current blockchain technology leaving current solutions behind.