And it could happen within 15 years, this. Legendary fund manager Stanley Druckenmiller is worried that the US dollar will lose its world’s reserve currency status.
Furthermore, he believes that it will be hard to unseat Bitcoin as a store of value.
The billionaire investor expressed these views in an interview with CNBC Tuesday, where he talked about the US economy, Bitcoin, and cryptocurrencies.
He said that he has no doubt that we are in a raging mania in all assets, explaining that crypto is a solution to the lack of trust in Fed Chairman Jerome Powell and the rest of the world’s central bankers.
These policies of heavy debts and deficits will threaten the dollar’s status as the reserve currency of the world. In his view, he is yet to find any period in world history where monetary and fiscal policy were this out of step with the economic circumstances.
“If we’re going to monetize our debt and we’re going to enable more and more of this spending, that’s why I’m worried now for the first time that within 15 years we lose reserve currency status and of course all the unbelievable benefits that have accrued with it.”
Druckenmiller also mentioned that five or six years ago he said that crypto was a solution in search of a problem. He says that the problem has been clearly identified now. It is Jerome Powell and the rest of the world’s central bankers. There is a lack of trust with these decision makers.
Talking about crypto in general, the fund manager noted that Ethereum has the lead in terms of smart contracts, in terms of commerce. Yet, at the same time, it is going to be very hard to unseat Bitcoin as a store of value, even with something like the digital dollar on the horizon.
For this reason, it is too early to know which currency will replace the dollar.
But a change is coming nonetheless.
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