As of late, bitcoin has been suffering somewhat. The world’s number one digital currency by market cap has fallen into the high $53,000 range, which is about $2,000 less than where it has been all week. While bitcoin falls, other currencies – such as Ethereum – are reaching record highs, yet analyst and big-time investor Stanley Druckenmiller is confident that no permanent harm will come to the currency, and that it will remain at the top of the crypto ladder at least for the time being.
Steven Druckenmiller: BTC’s Price Cannot Be Beaten
Bitcoin has always been the father of crypto. It first emerged in 2009 (that is when it was first mined) and several competing altcoins have come about following its initial introduction, though to be fair, none have come close to bitcoin’s present market cap. While other coins may have become popular for other reasons – for example, Ethereum is widely lauded for its smart contract capabilities – bitcoin remains at the top in terms of price, and according to Druckenmiller, this is not going to change at any point in the immediate future.
In addition, he is confident that the present suffering bitcoin has endured is only temporary, and that the currency is about to get much bigger. This is due, in his opinion, to new federal policies that are taking place. While these policies remain nameless at the time of writing, he comments that they are likely to cause many more problems for the U.S. dollar and lead to further inflation.
Speaking about bitcoin, Druckenmiller says:
It is going to be very hard to unseat bitcoin as a store of value asset because it has a 14-year-old brand. It has been around long enough, and obviously there is a finite supply.
But while bitcoin is still number one in the world of crypto, Druckenmiller seemed to hint that at some point – perhaps in a coming century – another cryptocurrency could wind up taking the top spot. He says there are multiple cryptocurrencies being introduced every day, and it is certainly possible for one of these assets to potentially take over as the leader of the digital world. He mentioned:
The quality of the competition that is going to come against the incumbents in this space is going to be brutal. That is why I think it is just too early to call who is going to be the winner when it comes to the payment system, commerce, that kind of stuff.
More Disastrous Policies Coming?
Druckenmiller also says that the Fed is likely to make even more disastrous decisions that could ultimately spell doom for USD and other forms of fiat. He claims:
I cannot find any period in history where monetary and fiscal policy were this out of step with the economic circumstances. Not one.