Soros Fund: „Bitcoin is no longer a fringe phenomenon“.
The US dollar, of all things, may have turned Bitcoin from fringe to mainstream attraction.
Dawn Fitzpatrick, head of investments at Soros Fund Management, believes that the increasing devaluation of the US dollar has ensured that Bitcoin (BTC) is no longer a fringe asset.
In this context, Fitzpatrick, who directs the Bitcoin Evolution app investment fortunes of infamous mogul George Soros‘ asset management firm, confirms to Bloomberg that her firm is now also interested in the cryptocurrency.
„We find the whole infrastructure around the crypto market very interesting, which is why we have already made some investments in it. We believe that the market has reached an inflection point,“ says the CIO.
In turn, she sees this inflection point as the result of rising inflation of fiat currencies. The amount of US dollars in circulation alone has risen by 25% in the past year, the expert explains:
„In terms of cryptocurrencies in general, we have reached a very important point. Bitcoin could have remained a fringe asset, but in the last 12 months, money supply in the US has increased by 25%.“
The Soros Fund has invested in two crypto projects this month alone
The first investment was made as part of a $200m funding round from NYDIG. The second investment was in crypto company Lukka, which was able to generate US$53 million through the corresponding funding round.
The asset management industry’s sudden affection for bitcoin and the crypto industry as a whole stems from a fear of continued inflation, as Fitzpatrick explains:
„There really is a fear of fiat currencies devaluing. While I don’t see Bitcoin as a currency, I see it as a commodity, but it’s a commodity that can be transferred and held without a lot of hassle.“
Finally, the investment chief goes on to discuss central bank digital currencies, noting that China has manoeuvred itself into a strategic lead. But even if the Middle Kingdom is the first to issue a central bank digital currency, she does not see this as a long-term threat to Bitcoin’s success.