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Bitcoin has become the strongest asset of the past year, and several institutional investors have already invested in it. The debasement of the US Dollars and other economic factors has put Bitcoin in a strong position over the past year.
Bitcoin is now a strong asset
Soros Fund Management chief information officer (CIO) Dawn Fitzpatrick believes that Bitcoin is no longer a fringe asset as it has gained widespread adoption globally. Fitzpatrick told Bloomberg that the inflation of the United States dollar helped in making Bitcoin a stronger asset.
Soros Fund Management, an asset management fund created by global investor George Soros, recently began taking an interest in Bitcoin and other cryptocurrencies. Fitzpatrick stated that the firm is intrigued by the infrastructure around crypto, and they have been making some investments into that infrastructure.
She added that the crypto space is at an inflection point thanks to fiat inflation, which has seen the US Dollar money supply increase by 25% over the past year. The CIO added that “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 US by 25%.”
Fitzpatrick stated that although Bitcoin is a commodity, it is a unique one since it can be stored and limited in supply. “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,” she added.
Soros Fund invests in crypto projects
Soros Fund has spent millions of dollars in crypto-focused projects in March. The firm participated in the $200 million funding round held by NYDIG and the $53 million raised by crypto accounting firm Lukka. The CIO stated that Soros Fund is interested in investing in various cryptocurrency companies, from those providing the technology to those carrying out the mundane tasks like taxation and accounting.
Fitzpatrick also talked about central bank digital currencies and how China is moving to dominate the space. She believes that China wants its digital currency to gain global adoption. However, Fitzpatrick doesn’t think CBDCs would have long-term adverse effects on Bitcoin. Although the CBDC threat is real, it would be temporary. She doesn’t think it will be successful in permanently destabilising Bitcoin,
The CIO didn’t respond to the questions about her personal Bitcoin investment but adds that the firm is a believer in the cryptocurrency ecosystem.
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