Bitcoin future

Soros Fund Management, the financial firm founded by billionaire and philanthropist George Soros, permitted bitcoin (BTC) trading earlier this year. The company’s chief investment officer, Don Fitzpatrick, indicated that it is investing in Bitcoin and blockchain infrastructure.

So far, here’s what we know about his Bitcoin views.

Who is George Soros?

George Soros is well-known for his investment achievements and charity initiatives. He gave $18 billion to Open Society Foundations, a network of human rights and justice organizations, in 2017, accounting approximately 80 percent of his assets.

Because he profited $1 billion on short sales of the British pound in 1992, Soros is known as “the guy who ruined the Bank of England.” When the price of an asset decreases, short selling allows investors to benefit.

Because the 91-year-old man is renowned as the world’s greatest currency trader, people are interested in his thoughts on the ever-evolving arena of digital currencies. Another reason is his fear that he and his organization may lose bitcoin, basically betting on the devaluation of the dominant cryptocurrency.

Soros’ Bitcoin Opinions

What does George Soros say about bitcoins?

When Soros addressed at the World Economic Forum in Davos in January 2018, he branded Bitcoin as a “typical bubble.” He compared the Bitcoin market to the tulip mania that swept the Netherlands in the 16th century.

What distinguishes bitcoin from other cryptocurrencies? Volatility. “Bitcoin is not a money,” he explained, “since a currency must be a stable method of saving, and a currency that fluctuates by 25% each day cannot, for example, be used to pay wages.” Because wages might drop by 25% in a single day.”

He did, however, see the “innovative” potential of blockchain technology. Soros stressed the positive use case of blockchain technology, despite the fact that it may be used for both good and negative. He explained, “We actually use it to assist migrants interact with their families, keep their money safe, and carry it with them.”

His investment business recently opted to invest in bitcoin, but Soros remained silent.

Soros Fund Management intends to invest in cryptocurrencies for a variety of reasons.

In March, Fitzpatrick told Bloomberg Front Row, “We think all the infrastructure around cryptocurrency is really exciting, and we’re making some investments in that infrastructure.” Everything from bitcoin exchanges to asset management to cryptocurrency tax filing is referred to as infrastructure by her.

She added that deflation has sparked interest in cryptocurrency. “Things like bitcoin may have remained a secondary asset,” Fitzpatrick said, “but the money supply in the United States has expanded by 25% in the last 12 months.”

Like many investors, Fitzpatrick views bitcoin as a commodity rather than a currency, noting that it can be stored, transferred, and has a finite amount of value. According to the IT director, Bitcoin has managed to take some market share away from gold.

According to Fitzpatrick, Central Bank Digital Currencies (CBDC) or GovCoins could constitute a short-term threat to Bitcoin. CBDCs are government-backed blockchain-based digital currencies. They’re digital equivalents of traditional currencies such as the dollar.

For some years, China has been testing the digital yuan, and the Federal Reserve is weighing the benefits and drawbacks of the digital dollar. CBDCs provide some of the benefits of cryptocurrencies, such as quick and low-cost payment processing, but without the volatility or danger of cryptocurrencies. However, because they are centralized, they can be difficult to overcome in terms of privacy and security.

It is no longer considered a secondary asset.

Since 2018, a lot has changed. Cryptocurrency is becoming more widely accepted as a form of payment, with a recent Bakkt survey revealing that 48% of Americans had purchased cryptocurrency.

If you want to acquire bitcoins with Soros Fund Management, make sure you’re aware of the hazards and only invest money you can afford to lose. Investing in bitcoin has the potential for great rewards, but it also has the potential for large losses.