Home Cryptocurrency 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

by Gordon James

Dawn Fitzpatrick, chief information officer at the Soros Foundation, said bitcoin (BTC) may have once been considered a foreign asset, but the inflation of the US dollar has changed that.

Speaking to Bloomberg, Fitzpatrick said her firm – an asset management fund founded by global investor George Soros – has recently started focusing on bitcoin.

We think the whole infrastructure around crypto is really interesting, and we’re making some investments in that infrastructure – and we think it’s at an inflection point, Fitzpatrick said.

This inflection point is the result of fierce inflation that has led to a 25% increase in the US dollar money supply in the past year alone, Fitzpatrick said:

I think in terms of crypto in general, we’re at a very important point where something like bitcoin may have been sitting on the sidelines, but in the last 12 months we’ve seen the money supply in the U.S. increase by 25%.

The Soros Foundation has made two investments in crypto projects this month alone. The first is part of a $200 million funding round led by NYDIG, and the second is an investment in cryptocurrency accounting firm Lucca, launched on the 25th. The month of March brought in $53 million.

The fund’s belief in bitcoin and related technologies also seems at odds with its aversion to tighter inflation, which Fitzpatrick says is a real fear:

So there is a real fear of devaluation of the currency. And when we think of bitcoin, I don’t think of a currency, I think of an asset. But it is a commodity that is easy to store and ship.

Fitzpatrick spoke briefly about central bank digital currencies, particularly in relation to China, which she said is strategically poised to become a pioneer in CBDC technology. But even if China is the first country to issue a centralized digital currency, Fitzpatrick doesn’t think the impact on bitcoin will be too destabilizing in the long run.

They want it to be used globally, and that’s a potential threat to bitcoin and other cryptocurrencies, Fitzpatrick said, adding: I think it’s a real threat, but I think it will be temporary. I don’t think it will succeed in permanently destabilizing bitcoin.

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