The Federal Reserve’s policies are threatening the U.S. dollar’s reserve currency status, warned Stanley Druckenmiller.
Within the next 15 years, cryptocurrencies might replace it in this role, he said.
But Ethereum is unlikely to beat Bitcoin in that event, Druckenmiller said.
Billionaire investor Stanley Druckenmiller first made headlines in the crypto world last November when he revealed he had bought Bitcoin, and said his Bitcoin investment “will probably work better” than gold, “because it’s thinner, more illiquid and has a lot more beta to it.”
In an appearance on CNBC’s Squawk Box, Druckenmiller warned that the U.S. dollar could lose its reserve currency status and “all the unbelievable benefits that accrued from it” within the next 15 years.
If that happens, Druckenmiller argued, the dollar will most likely be replaced by “some kind of crypto-derived ledger system invented by some kids from MIT or Stanford”—but that contender will have to beat Bitcoin to the title.
“It’s going to be very hard to unseat Bitcoin as a store of value, because it’s got a 14-year brand, and there’s a finite supply,” the billionaire noted. “It’s just not probable in my mind that Ethereum is gonna be the ultimate winner.”
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