Stanley Druckenmiller, the billionaire hedge fund manager and former chairman and president of Duquesne Capital in a recent interview with CNBC said that it would be quite difficult to unseat as a store of value because of the finite supply, he also went on to compare Bitcoin with the rise of Facebook and Google despite not being the first firm in their respective fields of social network and search engine respectively.
"It's going to be very hard to unseat #bitcoin as a store of value asset," says Stanley Druckenmiller #btc. "Yahoo invented the search engine … We all know what happened with Google versus Yahoo." pic.twitter.com/IwnlEp9wpw
— Squawk Box (@SquawkCNBC) May 11, 2021
Bitcoin this bull season has solidified its position as a hedge against inflation as many Fortune 500 companies have started using it as a form of treasury reserve instead of the US Dollar. Tesla and MicroStrategy who have invested the most in Bitcoin up until now have made more profit by simply holding the top cryptocurrency on their balance sheet than the profit they have generated over their lifetime operations.
Apart from Fortune 500 companies, many Wall Street giants including former staunch critics such as Goldman Sachs and JP Morgans have also started offering Bitcoin-based investment vehicles amid growing client demand.
Stanley Druckenmiller: US Dollar Could Lose its Reserve Currency Status in 15 Years
Druckenmiller went onto claim that the US Dollar could lose its reserve currency status within 15 years amid degrading performance and value. He went onto blame the flawed policies of the Federal Reserve to be one of the key reasons behind its degrading value in the international trade market. He said,
“5-6 years ago I said crypto was a solution in search of a problem. The problem has been clearly identified. It is Jerome Powell and the rest of the world’s central bankers”
“I think it’s more likely than not that we (the USD) will lose reserve currency status within 15 years.” pic.twitter.com/hlTGECCB8Z
— Marty Bent (@MartyBent) May 11, 2021
The popularity of Bitcoin and other digital assets has also been aided by the diminishing dollar value in the international trade market. The reason for many of the publically traded companies to invest in Bitcoin was the same and as digital assets gain more popularity, the fed would require a real turnaround to keep USD relevant. The pandemic has only added to the growing woes of the governments around the globe that has led to a printing spree to aid the citizens via various stimulus packages.