Legendary investor Stanley Druckenmiller became a Bitcoiner back in November 2020, and he continues to be one as he said, “It's going to be very hard to unseat bitcoin as a store of value asset.” According to him, Bitcoin has been around long enough. He gave the example of how

“Yahoo invented the search engine …which was marginally better. We all know what happened with Google versus Yahoo.”

Druckenmiller also mentioned Ethereum, which he notes is better in some ways, but he is not sure if it will be the one to emerge as the victor.

“Obviously, Ethereum has the lead in terms of smart contracts…It's just not probable that Ethereum is gonna be the ultimate winner.”

However, he says “it's too early” to decide which crypto will win, noting that the cryptocurrency space has some of the brightest and smartest minds which will increase the quality of competition and make it brutal.

During his CNBC interview, Druckenmiller further discussed a bubble being developed across a range of assets but said he is still long equity market. The billionaire investor said,

“I have no doubt, none whatsoever, that we are in a raging mania in all assets. I also have no doubt that I don’t have a clue when that’s going to end.”

The chairman and CEO of the Duquesne Family Office said though long stock market, they are not nearly as long as they were about five months ago.

“We’re still playing the game. We’ve shifted a lot of our relative bets into commodities, into interest rates, into the dollar.”

But the Federal Reserve aimed at keeping the market and economy afloat by holding rates down and buying a trillion in bonds even though both are thriving is a long-term risk.

“I can’t find any period in history where monetary and fiscal policy were this out of step with the economic circumstances, not one.”

While Fed’s initial action to combating the pandemic-related threat was fine, the central bank has been doing it for too long. And over the long haul, he said, these policies and heavy debts and deficits will threaten the dollar’s world’s reserve currency status.

“If they want to do all this and risk our reserve currency status, risk an asset bubble blowing up, so be it. But I think we ought to at least have a conversation about it,” Druckenmiller said. This has him worried 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.”

But while there has been no other viable alternative before, there is now in terms of crypto, he said.

“Europe is a complete mess. Who’s gonna trust the Chinese…I said that crypto was a solution in search of a problem…The problem has been clearly identified. It’s (Fed Chair) Jerome Powell and the rest of the world’s central bankers.”

“There’s a lack of trust.”

The ultimate solution, according to him, could be “some kind of ledger system invented by some kids from MIT or Stanford,” though he said that “I don’t know what it will be.”

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