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

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

Druckenmiller is confident with the comeback of crypto, especially with the recent condition of the global economy as the world is combating both recession and inflation.

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

He said:

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

Fed Triggered Biggest Asset Bubble In History?

In addition, Druckenmiller says that actions made recently by the Federal Reserve triggered the biggest asset bubble in history. He also warned that economic collapse would normally happen following these bubbles. 

On the other hand, the Fed dismissed issues circling inflation at that point, stressing that it wasn’t included in their mandate.

Evidently, Bitcoin boomed in 2021 but it crashed the following year after the Fed’s monetary policies that are aimed to bust inflation this 2022. In June, the yearly CPI spiked by 9.2% but has now ribbed down to 8.2% as per August data.

While the hedge manager is satisfied with the way the central bank is able to circumvent inflation, he is skeptical that they can make it next year without experiencing a recession. Overall, Druckenmiller isn’t so confident about the SEC’s moves in abating inflation.  

Further, Druckenmiller pressed on, saying:

“Let’s see what happens if we get a hard landing… You have to slay the dragon. And the chair is right. You’re probably going to have some pain.”

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

Druckenmiller Confident That Crypto Will Climb Higher

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

On the brighter side, he predicts that the value of cryptocurrency is bound to climb once central banks changes course similar to what the Bank of England has planned to enact.

Cryptocurrency will be experiencing a renaissance, especially with the waning of trust in central banks and many people turning their heads to what crypto can offer.

Similar to gold, Bitcoin is also being seen as a hedge against inflation. More so, the crypto is even deemed to be far superior compared to gold, heralding it as “the new global money” propelling many central banks to avoid it like a flu.

The billionaire businessman and investor think that the repercussions of the central bank’s immobility for several months will linger on 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