„Really interesting“: Soros Fund Management gets involved with crypto infrastructure
Soros CIO Dawn Fitzpatrick says the hedge fund finds the infrastructure around crypto „really interesting“.
She says crypto is at an „inflection point“ due to increased Profit Secret inflation over the past year.
Fitzpatrick also comments on how China’s attempts at a CBDC could affect bitcoin.
„Soros Fund Management“ CIO Dawn Fitzpatrick says the fund manager finds the infrastructure around crypto „really interesting.“
„We’ve made some investments in that infrastructure,“ Fitzpatrick told Erik Schatzker on Bloomberg’s Front Row.
„I would say it’s everything from exchange asset managers, custodians to the mundane, like tax reporting on your crypto profits, and everything in between. We think it’s interesting.“
Crypto at an inflection point
Fitzpatrick also stresses that crypto is at an „inflection point“ – in terms of growing interest and adoption.
„Something like Bitcoin might have remained a fringe asset if we hadn’t seen the money supply in the US increase by 25% in the last 12 months,“ Fitzpatrick says. „So there is a real fear of the devaluation of fiat currencies.“
In terms of Bitcoin itself, Fitzpatrick says BTC is more of a commodity than a currency. However, it is a commodity with many appealing features for investors.
„It’s a commodity that’s easily storable, it’s easily transferable. The tax office classifies it as a physical asset. It has a finite amount of supply, and that supply halves every four years,“ she said.
These aspects have made bitcoin an attractive alternative to gold (to buy bitcoin cheap platform comparison). Fitzpatrick comments that gold has struggled more recently than in past inflationary times. „I think that’s because bitcoin is taking away some of its buyer base,“ she explains.
CBDCs as a threat to bitcoin
Fitzpatrick also addressed how cryptocurrencies will be affected by central bank digital currencies (CBDCs). „Central bank digital currencies will be here faster than people expect,“ she assessed.
The Soros CIO mentioned China’s trials with its own CBDC, which began last year. Fitzpatrick said there are strategic reasons why China is striving to be first to market with CBDCs. „They want this digital currency to be used around the world,“ she stressed.
While she admitted that this could pose a threat to bitcoin (to buy bitcoins by instant transfer guide) and other cryptocurrencies, she said it would only be temporary.
„I don’t think they will succeed in destabilising Bitcoin permanently,“ she concluded.