Soros Fund Management’s primary investment officer(CIO)says that reserve bank digital currencies are a possible hazard to bitcoin and other cryptocurrencies however it will just be short-term. She likewise states that bitcoin is taking a few of gold’s purchaser base away
. Crypto’s ‘Inflection Point’
Soros Fund Management Chief Financial Investment Officer (CIO) Dawn Fitzpatrick spoke about bitcoin and the impact reserve bank digital currencies (CBDCs) could have on the crypto industry in an interview on Bloomberg’s Front Row last week. She said:
We think the entire facilities around crypto is really intriguing … We’ve been making some investments into that infrastructure and we believe that is at an inflection point.
She called some examples of what her firm has actually been buying, consisting of exchanges, property managers, custodians, and tax reporting business. Previously this month, Soros Fund Management purchased the New York Digital Investment Group (NYDIG), a company of technology and financial investment options for bitcoin.
Soros Fund Management has about $27 billion in properties under management. Institutional Financier ranks it the 2nd most successful hedge fund of perpetuity, returning 44% each year given that it was formed in 1970 by veteran investors George Soros and Jim Rogers.
Central Bank Digital Currencies: A Momentary Danger to Cryptocurrencies
Fitzpatrick also discussed the potential effect of reserve bank digital currencies on the crypto market. “Reserve bank digital currencies are going to be here, I believe, quicker than people anticipate,” she suggested, mentioning China as an example. “There are some strategic reasons that they [China] are going to be a first mover,” the CIO continued, emphasizing that China wishes to use its digital currency worldwide. She cautioned:
It is a potential risk to bitcoin and other cryptocurrencies. I think it is a real risk however I think it will be short-lived. I don’t think they’ll succeed in permanently destabilizing bitcoin.
Worry of Fiat Currency Debasement, Investors Moving From Gold to Bitcoin
Fitzpatrick discussed that she sees bitcoin as a product, mentioning: “When you think of bitcoin, I do not believe it’s a currency. I think it’s a commodity however it’s a commodity that’s easily storable. It’s quickly transferable.”
She then described how the quick boost in the U.S. money supply has conserved bitcoin from staying a fringe asset, stressing that “There is a genuine fear of debasing fiat currencies.” The CIO detailed: “When it concerns crypto generally, I think we are at an actually important moment in time because something like bitcoin might have stayed a fringe possession, however for the truth that over the last 12 months we’ve increased cash supply in the U.S. by 25%.”
The Soros Fund Management CIO likewise thinks that some financiers are moving far from gold to bitcoin, elaborating:
When you take a look at gold cost action, in the context of a fairly robust inflation story, it’s had a hard time getting traction, and I believe it’s since bitcoin is taking some of its buyer base away.
The CIO was also asked particularly if she owns any bitcoin herself. However, she laughed and reacted, “I am not going to respond to that.”
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