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Stanley Druckenmiller Says The Fed Is Endangering The Dollar, Presenting An Opportunity For Cryptocurrency

Bitcoin (CRYPTO: BTC) will likely hold its place as the leading store of value in the cryptocurrency space, but Ethereum (CRYPTO: ETH) will face brutal competition, billionaire investor Stanley Druckenmiller said Tuesday on CNBC's "Squawk Box."

05/11/2021 12:07

Bitcoin (CRYPTO: BTC) will likely hold its place as the leading store of value in the cryptocurrency space, but Ethereum (CRYPTO: ETH) will face brutal competition, billionaire investor Stanley Druckenmiller said Tuesday on CNBC's "Squawk Box."

Current Federal Reserve policies are endangering the status of the U.S. dollar, Druckenmiller said, adding that it will lose its reserve currency status within 15 years. 

The dollar is "the cleanest dirty shirt in the room," he said.

Five or six years ago, Druckenmiller thought cryptocurrency was a solution in search of a problem, he told CNBC. "The problem has been clearly identified," he said, adding that the problem is central bankers.

The most likely replacement is a ledger system that has not yet been invented, Druckenmiller said. 

It will be very difficult to unseat Bitcoin as a store of value because it has been around for 14 years, and although Ethereum has the lead in terms of smart contracts, it is not likely to be the "ultimate winner," Druckenmiller told CNBC.

Related Link: What's Driving The Ethereum Rally?

Price Action: Bitcoin is up 91.73% year-to-date. At last check Tuesday, it was up 0.35% at $56,000.60.

Ethereum is up 434.59% year-to-date. It was up 1.82% at $4,021.20 at last check Tuesday.

(Image by WorldSpectrum from Pixabay)