Cryptocurrency

Druckenmiller sees ‘big role’ for cryptocurrency as central bank trust evaporates

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prominent investor Stanley Druckenmiller He said cryptocurrencies could “play a big role” as people look for alternatives to fiat currencies.

The comments came in a CNBC interview with host Joe Curnen, in which the two discussed macro conditions, particularly the Bank of England’s (BoE) sudden turn to quantitative easing.

Bank of England on fire

23rd September, Prime Minister of the United Kingdom Kwasi Kwarten Offered a package of tax cuts designed to revive a struggling economy.

The package included reductions in income tax, stamp duty (property purchase tax) and the elimination of planned business tax rate increases. Kwarteng said a ‘mini-budget’ would improve the UK’s competitiveness and encourage employment and business investment.

The Treasury confirmed a further £72bn ($78.08bn) increase in government borrowing to finance tax cuts.

On September 28th, the BoE was forced to buy £65bn ($70.6bn) of these government bonds to avoid a crash in UK government bond prices. The move was sparked by a liquidity crisis in the Pension Plan’s owned Liability Driven Investment fund. Without intervention, these funds would have become insolvent.

But critics warned that taxpayers would come to bear the cost of bailing out the pension system. further claims to be 180 of

@BTC_ Archive He hinted that the BoE would be forced to intervene, adding that other central banks would soon be forced to take similar steps.

Cryptocurrencies gaining traction as a viable alternative

A U-turn in quantitative tightening suggests that there must be a crash landing for the BoE to undo years of money printing and low interest rates. Wednesday’s intervention just drove canned food down the road.

Druckenmiller suggested that the general public is losing confidence in the banking system. As such, he sees cryptocurrencies as part of a move to a better plan.

“We see cryptocurrencies playing a big role in the Renaissance as people stop trusting central banks.”

Drakkenmiller told Kahnen that it does not own cryptocurrencies, especially in a tightening quantitative environment.

The US central bank has so far stuck to its hawkish stance. Druckenmiller has admitted that more pain is likely, but is just hoping.”[s] They stick to their guns.

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