Bitcoin at “inflection point” and no longer a “fringe asset”, says Soros Fund Management CIO

Dawn Fitzpatrick, the Chief Investment Officer of Soros Fund Management made some sound statements in favor of Bitcoin and other cryptocurrencies during an interview with Bloomberg this Thursday.

Fitzpatrick said that Bitcoin and other cryptocurrencies are at an “inflection point”, which is partly due to the increased money supply in the U.S.

She further said that Bitcoin is “interesting” and no longer a “fringe asset” and that therefore the Soros Fund Management is investing in cryptocurrency infrastructure. However, she did not go into detail about actual cryptocurrency investments of the Fund.

Fitzpatrick said:

“When it comes to crypto generally, I think we’re at a really important moment in that something like Bitcoin might have stayed a fringe asset but for the fact that in the last 12 months we’ve increased money supply in the US by 25% so there’s a real fear of debasing of fiat currencies,”

She then went on about the specific qualities Bitcoin possesses and referred to it being “easily storable, easily transferable, while having a finite supply.” These undeniably being characteristics of what we call ‘sound money’, she also stated to believe that Bitcoin has taken some of gold’s buyer base away.

Fitzpatrick also brought up central bank digital currencies (CBDCs) and said that they will be here “quicker than people expect” with China being ahead of the rest by already having their state owned and commercial banks piloting the digital yuan. 

According to the Soros Fund Management CIO, China’s early move into CBDC could pose a potential threat to Bitcoin and other cryptocurrencies and was likely made in an attempt to undermine the influence of Bitcoin (in China). She does not think China will be “successful in permanently destabilizing Bitcoin.”

In the U.S., a digital dollar is still a long way from becoming a reality. Earlier in the month, Federal Reserve Chairman Jerome Powell said that a decision on CBDC is not yet made. 

An interesting question rises though when looking at U.S. – China relations and both their global ambitions. What would happen if the U.S., in opposition to China, would decide to move all-in on Bitcoin and bypassing a digital dollar altogether?