Soros Fund Management CIO Dawn Fitzpatrick sees Bitcoin in an inflection point, due to the fund’s active investment in crypto infrastructure.
Fitzpatrick said cryptocurrency infrastructure, such as platforms, fund managers, custodians, and tax reporting service providers was a “really interesting” category.
The Effect of USD on Bitcoin Valuation
The dramatic growth in the US money supply, according to Fitzpatrick, has triggered “real fear” that government-issued currencies would be debased, causing the global economy to be at a “really interesting moment.” As a consequence, Bitcoin has been saved from its role as a “fringe asset,” according to her.
Fitzpatrick went on to say that she didn’t think about Bitcoin as an asset, but more as a product that could be processed and exchanged quickly.
She also showed her comprehension of Bitcoin’s supply schedule, finding out that the rate of fresh supply is halved every four years, a process known as “the halving” of Bitcoin.
Soros Investment Management oversees a record of $27 billion in reserves. It is the second most profitable hedge fund of all time, with annual returns of 44 percent since its founding in 1970 by George Soros and Jim Rogers.
Fitzpatrick enumerated Bitcoin’s advantages, including the fact that it’s easily storable, easily transferable, and has a limited supply, and said she believes it has drained some of gold’s buyer base.
Fitzpatrick has emphasized the importance of central bank digital currencies, stating that she believes they would be implemented faster than other people expect.
She predicted that China’s CBDC will be the first to launch and that it would be used for strategic geopolitical purposes around the world.
CBDCs, on the other hand, will pose a short-term danger to cryptocurrencies including Bitcoin, according to Fitzpatrick.
The CIO refused to reveal if she had participated in the cryptocurrency herself. She also didn’t comment on Soros Fund Management’s cryptocurrency holdings.
Not the First to the Bitcoin Party
Fitzpatrick’s theory on fiat currency deflation isn’t new: cryptocurrency holders often contend that the US dollar’s depreciation is a compelling excuse to keep alternative assets.
Michael Saylor, the CEO of MicroStrategy, who is widely credited with starting the institutional investing craze, frequently preaches that the “secure haven asset” is a safer bet than fiat currency.
Last summer, MicroStrategy became the first organization to participate in Bitcoin, incorporating it into its balance sheet. MicroStrategy currently holds $5 billion worth of Bitcoin.
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