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Bitcoin no longer a fringe asset due to US dollar debasement, says Soros Fund exec

Bitcoin no longer a fringe asset due to US dollar debasement, says Soros Fund exec


Source: Coin Telegraph

Soros Fund Management’s CIO said that Bitcoin is no longer out on the fringes, thanks to the debasement of the U.S. dollar over the past year.

Soros Fund Management chief information officer Dawn Fitzpatrick said Bitcoin (BTC) may once have been considered a fringe asset, but the inflation of the United States dollar has changed that.

Speaking to Bloomberg, Fitzpatrick said her firm — an asset management fund created by global investor George Soros — had recently begun to take an interest in Bitcoin.

“We think the whole infrastructure around crypto is really interesting, and we’ve been making some investments into that infrastructure — and we think that is at an inflection point,” said Fitzpatrick.

That inflection point is coming as a result of fiat inflation, which has seen the U.S. dollar money supply increase by 25% in the past year alone. Fitzpatrick said:

“I think when it comes to crypto generally, we’re at a really important moment in time, in that, something like Bitcoin might have stayed a fringe asset, but for the fact that, over the last 12 months, we’ve increased money supply in the U.S. by 25%.”

Soros Fund made two investments in crypto-focused projects this month alone. The first was as part of a $200 million funding round held by NYDIG, while the second was an investment in crypto accounting firm, Lukka, which raised $53 million on March 25.

The fund’s faith in Bitcoin and its related technologies appears to be equally matched by its distaste for more fiat inflation, of which Fitzpatrick says there is a real fear:

“So there’s a real fear of debasing fiat currencies. And when you think about Bitcoin, I don’t think of it as a currency, I think of it as a commodity. But it’s a commodity that’s easily storable, easily transferable.”

Fitzpatrick briefly mentioned central bank digital currencies, particularly in relation to China, which she says is moving strategically to become the first mover in CBDC technology. However, even if China is the first to launch a centrally issued digital currency, Fitzpatrick doesn’t think its effect on Bitcoin would be too destabilizing in the long run.

“They want that to be used around the world, and it is a potential threat to Bitcoin and other cryptocurrencies,” said Fitzpatrick, adding, “I think it is a real threat, but I think it will be temporary. I don’t think it will be successful in permanently destabilizing Bitcoin.” 

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Author: Greg Thomson