Soros Fund Management CIO Dawn Fitzpatrick said that Bitcoin (BTC) was once a little known and not easily understood asset, but that has changed due to inflation in the US dollar.
BloombergFitzpatrick highlighted that his firm, an asset management fund created by global investor George Soros, has recently become interested in Bitcoin.
“We think the cryptocurrency infrastructure is really interesting. We are making some investments in this infrastructure and we think this is at a crossroads,” said Fitzpatrick.
He explained that the reason for his change of mind was that the US dollar money supply rose by 25 percent last year alone, resulting in fiat inflation. Fitzpatrick said:
“I think we are in a critical period when it comes to cryptocurrency. Bitcoin has been viewed as a ‘frontier asset’ until now, but the truth is that the money supply in the US has increased by 25 percent in the last 12 months.
Soros Fund has made two investments in cryptocurrency-focused projects this month alone. The first was part of a $ 200 million funding round organized by NYDIG, while the second was the fund provided to crypto accounting firm Lukka, which raised $ 53 million on March 25.
Fitzpatrick, who believed in Bitcoin and related technologies, described the rising inflation in fiat currencies as the biggest fear:
“There is a real fear that fiat currencies will be devalued. When we take Bitcoin, I think of it as a commodity, not as a currency. It is a commodity that can be easily stored, easily transferred.”
Fitzpatrick thinks that even if the digital currency (CBDC) developed by the Central Bank of China is put into use first, its impact on Bitcoin will not be effective in the long run.