Soros Fund Investing in Crypto Infrastructure Says CEO; Bitcoin Is Taking Gold’s ‘Firebase Away’
In her “mysterious response,” Dawn Fitzpatrick refused to answer if she owns any BTC.
Soros Fund Management Chief Investment Officer Dawn Fitzpatrick revealed that the fund is making investments in the cryptocurrency industry as it sees an “inflection point” for Bitcoin and other crypto-assets.
In an interview with Bloomberg, when asked if she owns any Bitcoin, Fitzpatrick replied with a “mysterious” – “I'm not gonna answer that.”
While she didn’t reveal her personal Bitcoin holdings, she talked about her views on the cryptocurrency industry.
“We think the whole infrastructure around crypto is really interesting. We've been making some investments into that infrastructure, and we think that is at an inflection point. I'd say it's everything from kind of exchange asset managers custodians to the mundane like tax reporting on your crypto gains and everything in between. We think that's interesting.”
She further discussed how the Federal Reserve's money printing is the factor behind Bitcoin’s success.
“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 twelve months, we've increased money supply in the US by 25 percent. So there is a real fear of debasing of fiat currencies.”
According to her, Bitcoin is not a currency but a commodity that's easily storable and transferable. The IRS also classifies it as a physical asset that has a finite amount of supply. The fact that Bitcoin’s limited supply halves every four years is “interesting” to her.
“By the way when you look at gold price action in the context of a fairly robust inflation narrative of late, it's struggled getting traction. I think that's because Bitcoin is taking some of its firebase away.”
Regarding the central bank launching their own digital currencies (CBDC), Fitzpatrick said they are going to be here and even “quicker than people expect.” China is currently leading the race for CBDC as it has already run several digital yuan trials for a while now.
“There are some strategic reasons why they are going to be a first mover. And I do think from a geopolitical perspective; they want to use that digital currency too. They want that to be used around the world. And it is a potential threat to other bitcoin and crypto.”
While she thinks CBDCs are a “real threat” to crypto, it will only be “temporary,” as they won’t be successful in “permanently destabilizing Bitcoin,” she said.