Updated 02 Apr, 2021

Soros Fund Management CIO Says Bitcoin At “Inflection Point”

Soros Fund Management CIO Says Bitcoin At “Inflection Point”

Soros Fund Management CIO Says Bitcoin At “Inflection Point”

 

Key Takeaways

  • Soros CIO Dawn Fitzpatrick says the fund has made investments in crypto
  • Bitcoin at an inflection point as a result of fiat inflation in the US

The Chief Investment Officer of Soros Fund Management, Dawn Fitzpatrick, shared her thoughts on the rise of bitcoin and other cryptocurrencies, saying bitcoin is no longer “a fringe asset”, rather, the digital asset is now at an “inflection point”.

In an interview with Bloomberg, the Soros CIO said she has recently began looking into bitcoin and the surrounding crypto infrastructure. “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 Ms. Fitzpatrick.

The inflection point, according to Soros CIO, comes as a result of sovereign currency inflation, and more precisely, the fact that nearly 25% of all US dollars were created in the last year. “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%.”

On the issue of crypto outperforming the US dollar, Ms. Fitzpatrick said that there is “real fear of debasing fiat currencies”. She went on to mention Bitcoin’s positive attributes by highlighting that Bitcoin is more like “a commodity that’s easily storable, easily transferable.”

The Soros CIO also commented on rising talks of central bank digital currencies (CBDC), particularly a Chinese centrally issued digital currency. According to Ms. Fitzpatrick, the potential threat will not have a lasting effect on Bitcoin. “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.”

The Soros fund, founded by the billionaire investor George Soros, is one of the pioneers in the hedge fund industry with over 40 years of history. Dawn Fitzpatrick has been at the helm of investing for Soros since 2017 and now manages over $27bn of assets.