An American legendary businessman, who is associated with the fund management industry, Stanley Druckenmiller, is of the view that the US Dollars will lose its status of being a “world reserve” in the next 15 years if Bitcoin is not appreciated the way it should be. He suggested that there is a genuine lack of trust over Bitcoin amongst the heads of the world’s central banks including the US.
CNBC recently interviewed one of the world’s biggest fund managers namely Stanley Druckenmiller. During the interview, Druckenmiller was asked to give his thoughts on Bitcoin as well as the crypto industry. In his response, Druckenmiller stated that of course, the world is living in the times where asset obsession is raging furiously.
Druckenmiller is a veteran fund manager who is preferred by high-profile individuals and institutions. In the year 1981, Druckenmiller also founded his own fund management company by the name Duquesne Capital. He was then requested by George Soros to manage his fund namely Quantum Fund as its exclusive and sole portfolio manager. He continued to lead the George Soros fund till 2000. He was also remembered for being part of the massive betting in 1992 which was attributed towards GB Pounds. Through this betting campaign both, Druckenmiller and Soros made huge fortunes by yielding high profits.
He said that for the time being there are three major challenges apparently faced by the US Dollar. These challenges he described as deficits, policies of the Federal Reserve, and heavy debts. He was of the view that these three challenges are capable of changing the present status of the US Dollar as being a “world reserve”. He said that in his entire life he had never ever seen fiscal and monetary policies going out of order to this extent.
According to Druckenmiller, if the US will continue to carry out monetization of the debt, then there will be further spending of the kind. He told CNBC that he is worried that in the next 15 years, the US would not be able to keep US Dollar’s status intact. It will be a greater loss to lose the title of “world reserve”. He feared that this would also take away all the benefits the US has ever accrued through the title.
He referred to the time when some five years ago it was thought digitalization was the solution to most of the problems. Now the only problem is with the heads of the central banks including the US, suggested Druckenmiller. He advised that people like Jerome Powell would need to change their views regarding crypto and they have to overcome their lack of trust.
With regard to Bitcoin, Druckenmiller said that it would be impossible for the US or anyone to oust Bitcoin. But Bitcoin deserves an appreciation which has been pending due for a very long time, suggested Druckenmiller.