Crypto

Crypto Has A Bright Future As People Lose Trust In Central Banks, Says Billionaire | bitcoinist.com

Crypto is making positive noise as more people lose faith in central banks, says billionaire hedge fund investor Stanley Druckenmiller.

Druckenmiller is confident in the return of crypto, especially with the recent state of the global economy as the world struggles with both recession and inflation.

Druckenmiller was recently interviewed by CNBC and he criticized the radical monetary policy imposed by the US Federal Reserve.

He said:

“I was just incredibly frustrated with what looked to me like a Fed that was just taking incredible risks.”

The Fed triggered the biggest asset bubble in history?

Additionally, Druckenmiller says recent actions by the Federal Reserve triggered the biggest asset bubble in history. He also warned that economic collapse would normally occur after these bubbles.

On the other hand, the Fed dismissed questions surrounding inflation at the time, emphasizing that it was not part of its mandate.

Obviously, Bitcoin boomed in 2021, but it crashed the following year after the Fed’s monetary policies aimed at bringing down inflation in 2022. In June, the annual CPI rose by 9, 2% but is now down to 8.2% based on August data.

While the hedge manager is pleased with how well the central bank is able to steer inflation around, he is skeptical about its ability to get there next year without experiencing a recession. Overall, Druckenmiller isn’t so confident about the SEC’s actions to reduce inflation.

Additionally, Druckenmiller went on to say:

“Let’s see what happens if we get a hard landing… You have to kill the dragon. And the chair is right. You will probably have pain.

This point is validated by Fed Chairman Jerome Powell, acknowledging that fighting inflation will require consistency in terms of what they call “below-trend growth”.

Druckenmiller Confident Crypto Will Climb Higher

At this point, Druckenmiller pointed out that he is moving away from Bitcoin and other cryptocurrencies following further tightening from the Fed.

On the bright side, he predicts that the value of cryptocurrency is bound to soar once central banks change course, like what the Bank of England has planned to enact.

Cryptocurrency will experience a renaissance, especially with the loss of faith in central banks and many people turning to what crypto has to offer.

Similar to gold, Bitcoin is also considered an inflation hedge. More so, crypto is even deemed far superior to gold, heralding it as “the new global currency” causing many central banks to avoid it like the flu.

The billionaire businessman and investor believes that the repercussions of the central bank’s inaction for several months will persist and negatively impact the economy for a long time.

Crypto total market cap at $908 billion on the daily chart | Source: TradingView.com

Featured image from The Hustle, Chart: TradingView.com

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