Billionaire investor Stanley Druckenmiller blasted the Fed, touted bitcoin over ethereum, and issued a dire warning about the dollar in a recent interview. Here are the 10 best quotes.

Stanley Druckenmiller
Stanley Druckenmiller.

  • Stanley Druckenmiller blasted the Federal Reserve for boosting asset prices and the national debt.
  • He warned the dollar could cease to be the global reserve currency within 15 years.
  • The investor is more bullish on bitcoin than Ethereum’s ether, and expects to sell his stocks.
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Stanley Druckenmiller warned the Federal Reserve’s stimulus efforts are inflating a massive asset bubble, and endangering the dollar’s status as the world’s reserve currency, in a CNBC interview this week.

The billionaire investor and boss of Duquesne Family Office also expects to cash out his stocks in the next few months, suggested a cryptocurrency-based ledger system could usurp the dollar on the global stage, and predicted bitcoin will have more staying power than the Ethereum network’s ether token.

Here are Druckenmiller’s 10 best quotes from the interview, lightly edited and condensed for clarity:

1. “A monkey could make money in this market.” – commenting on how a wide range of assets have surged over the past year as the Federal Reserve has pumped liquidity into financial markets.

2. “I have no doubt 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 gonna end. I knew we were in a raging mania in ’99, but it kept going on, and if you had shorted the tech stocks in mid ’99, you were out of business by the end of the year.”

3. “I can’t find any period in history where monetary and fiscal policy were this out of step with the economic circumstances. We’re still acting like we’re in a black hole, when in fact the economy’s accelerating.”

4. “I will be surprised if we’re not out of the stock market by the end of the year, just because the bubbles can’t last that long. I really have an open mind and right now, treacherously, we’re still playing the game to some extent.”

5. “I’m worried for the first time that within 15 years we lose reserve currency status and all the unbelievable benefits that accrued from it.” – warning that aggressive monetary and fiscal policy will make the national debt balloon, damaging the dollar’s prospects.

6. “I really don’t understand why 1.6% inflation with a mandate of price stability is a national tragedy. If the Fed wanna do all this and risk our reserve currency status, risk an asset bubble blowing up, so be it. But I think we oughta at least have a conversation about it.”

7. “The elephant in the room is inflation. It may become so obvious that the Fed has to move, and the longer they wait to move, the bigger the bubble will be and the bigger the reaction.”

8. “Five or six years ago, I said that crypto was a solution in search of a problem. That’s why I didn’t play the first wave of crypto – we already have the dollar, so what do we need crypto for? Well, the problem has clearly been identified, it’s Jerome Powell and the rest of the world’s central bankers.”

9. “The most likely replacement for the dollar would be some kind of crypto-derived ledger system invented by some kids from MIT or Stanford or some other engineering school that doesn’t exist yet.”

10. “It’s going to be very hard to unseat bitcoin as a store of value, because it’s got a 14-year brand, and there’s a finite supply. Ethereum has the lead in terms of smart contracts, in terms of commerce. But Facebook was not the first social network, it was number 11, and Yahoo may have invented the search engine, but we all know what happened with Google versus Yahoo. It’s just not probable in my mind that Ethereum is gonna be the ultimate winner.”

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Billionaire investor Stanley Druckenmiller says he owns bitcoin as a ‘sort of a plaything’ – and millennials look at it the way he views gold

Druckenmiller, Stan Druckenmiller
  • Stanley Druckenmiller said he owns bitcoin as a “sort of a plaything” but he isn’t sure if he believes in it.
  • “It could be a new asset class. The answer is I don’t know,” he said in a Goldman Sachs webcast.
  • Druckenmiller said younger millennials look at bitcoin the way he used to look at gold.
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US billionaire Stanley Druckenmiller says he owns some bitcoin, and it may well be a new asset class.

“I do own some of it,” he said in a recent episode of Talks with Goldman Sachs. “It’s gone up a lot since I bought it. It’s just sort of a plaything. I don’t really believe in it. I don’t really not believe in it. It could be a new asset class. The answer is – I don’t know.”

Bitcoin rose 13% to a record high on Monday after Tesla disclosed that it spent $1.5 billion to buy the popular cryptocurrency. The token was last trading around $43,725.51, smashing its previous all-time high near $41,000 set in January.

Tesla’s purchase is expected to create a ripple effect across corporations around the globe and add momentum to its shares as more investors start to factor in its crypto exposure as part of its overall valuation, according to analysts at Wedbush.

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Druckenmiller, chairman of the Duquesne Family Office, said he didn’t think bitcoin would be trading as high as it is if the central bank weren’t pumping record amounts of money into the economy to stop it collapsing. 

Although he was skeptical of it at first, he said bitcoin advocates have done an “unbelievable marketing job.”

“It’s been around 13 years,” he said. “And particularly, younger millennials look at it the way I’ve always looked at gold.”

Druckenmiller said he does doubt whether bitcoin can act as anything other than a store of value. He cited volatility, an immense amount of energy used in its generation, and other complex technical problems as shortcomings.

However, he has previously said that owning bitcoin is a good hedge against inflationary pressure.

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