Billionaire Stanley Druckenmiller said that the U.S. dollar is approaching a certain rubicon: in its current form, this monetary unit risks losing its status as the world’s reserve currency, because crypto-assets based on blockchain have more innovative properties than the American currency.
At the same time, the well-known hedge fund manager believes that something other than well-known cryptocurrencies such as bitcoin could be created on the basis of blockchain, which would eventually become the basis for a new global reserve currency. He does not rule out the possibility that such “rails” for renewed global finance will be developed in the research and technology centers of the Massachusetts Institute of Technology or Stanford University.
The billionaire admitted that in the early days of cryptocurrency development he didn’t pay attention to them because “we already had the U.S. dollar.” Now, however, he wonders, “Do we need to look for something to replace it?” Indeed, the emergence of data on May 12 about record inflation expectations in the U.S. economy, which have not been that high since 2008, led to a marked downward correction in key Wall Street indexes, which eventually also caused negative daily price movements for most cryptocurrencies.
Curiously, the troy ounce of gold also fell in price, sliding down by $15,000 to $1,821,000, increasing losses to -4.23% YTD. Meanwhile, bitcoin, which lost 4% overnight, falling to $54,000, continues to show a high return on investment since the beginning of the year – plus 92%.
Druckenmiller believes that in terms of cryptocurrency value saving tool, “other digital assets will be very difficult to replace bitcoin, because bitcoins have been around for 14 years, which is quite a long time, and there is obviously a limited supply of such assets.”