Don Fitzpatrick, Soros’ information manager for fund management, said that bitcoin (BTC) could once have been considered a margin asset, but inflation in dollars has changed that.

Fitzpatrick said in an interview with Bloomberg that her company – a private equity fund set up by global investor George Soros – has recently begun to take an interest in bitcoin.

“We think the whole infrastructure around cryptocurrencies is very interesting, and we’ve made some investments in that infrastructure – and we think that’s a tipping point,” Fitzpatrick said.

This turning point comes as a result of monetary inflation, which has led to an increase in the money supply in US dollars by 25% in the last year alone. Fitzpatrick said:

“I think when it comes to cryptocurrencies in general, we are at a very important time. In that, something like bitcoin can remain a marginal resource, but when it comes to the fact that in the last 12 months we have increased the money supply in the US by 25%. “.
This month alone, the Soros Foundation made two investments in crypto-oriented projects. The first was part of a $ 200 million round of funding led by NYDIG, and the second was an investment in cryptocurrency accounting firm Lukka, which raised $ 53 million on March 25.

The fund’s belief in bitcoin and related technologies seems to be in line with its aversion to inflation, which Fitzpatrick says is a real fear:

“So there is a real fear of devaluation of fiat currencies. When you think of Bitcoin, I do not think of it as a currency, I think of it as a commodity. But it is a product that is easy to store and easy to transport. ”
Fitzpatrick briefly mentioned the central bank’s cryptocurrencies, especially with regard to China, which she said is strategically moving towards becoming a leader in CBDC technology. Although China was the first to launch a centralized digital currency, Fitzpatrick does not believe that the impact on Bitcoin will destabilize in the long run.

“They want to use it all over the world, and it’s a potential threat to Bitcoin and other cryptocurrencies,” Fitzpatrick said, adding: “I think this is a real threat, but I think it will be a temporary threat. I do not think he can permanently destabilize Bitcoin. “

Source: CoinTelegraph