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Billionaire investor and hedge fund legend Stanley Druckenmiller is expressing optimism over crypto assets.
Druckenmiller in a CNBC interview that the lack of confidence and trust in central banks could lead to crypto assets playing a “big role” when the rebuilding of economies starts.
“I still think… if the Bank of England, what they did is followed by stuff like that by other central banks in the next two or three years, if things get really bad… I could see cryptocurrency having a big role in a Renaissance because people just aren’t going to trust the central banks.”
Earlier this week, the Bank of England embarked on an emergency bond-buying program to restore order in the British bond markets following market turmoil induced by the UK government’s plans to cut taxes and subsidize energy bills, a fact that would have exploded public debt. The bond-buying move was a sudden reversal of plans by the Bank of England to sell bonds accumulated since the global financial crisis of 2008-09.
The billionaire investor says that the U.S. Federal Reserve also made a “big mistake” by being late to hike interest rates in order to tame inflation.
“I like everything I’m hearing out of the Fed, and I hope they finish the job. They made a big mistake. They seem to have owned it, but it’s easy to own it when employment is strong. Let’s see what happens if we get a hard landing. I just hope they stick to their guns because this stuff was terrible in the ’70s. You have to slay the dragon.”
Druckenmiller has previously said that crypto solves the problem of the lack of trust in central banks
Asked to reveal whether he has any digital asset holdings, Druckenmiller says that it would be “tough” to own any crypto asset when interest rates are rising.
“I don’t own Bitcoin…
It’s tough for me to own anything like that [crypto] with central banks tightening.”
