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With Bitcoin and the broader cryptocurrency industry seeing good times in recent weeks and months, many well-known and renowned institutional investors and fund managers are racing to get in, hoping not to skip the ride. Soros Fund Management seems to be one of them.
According to Soros Fund Management’s CIO Dawn Fitzpatrick, the US economy is already paving the way for a key inflection point for Bitcoin. Fitzpatrick expressed her excitement in a recent interview with Bloomberg, noting that her company has invested in several firms offering crypto-infrastructure such as exchanges, fund managers, and wallets.
Various multinational corporations, government departments, and Wall Street have begun to recognise Bitcoin in recent months. Indeed, according to a recent Citibank survey,
“A focus on global reach and neutrality could see bitcoin become an international trade currency. This would take advantage of bitcoin’s decentralized and borderless design, its lack of foreign exchange exposure, its speed and cost advantage in moving money, the security of its payments, and its traceability.”
In the face of Bitcoin’s rising prominence, Gold and Bitcoin proponents are likely to continue debating over which asset class is more important these days. Fitzpatrick chimed in as well, saying,
“When you look at gold price action in the context of the inflation hedge narrative, it has struggled to gain traction because Bitcoin has taken some of its powerbase away. “
Recently, MicroStrategy CEO Michael Saylor estimated that in the future, consumers would choose Bitcoin to gold. Saylor advised investors to sell their gold and purchase Bitcoin instead in an interview with Andrew Henderson of Nomad Capitalist. He asserted that “gold is dead currency” and speculated that “other people will sell their gold.” Saylor claims that
“If you wait until you’ve been front-run by all the hedge funds when they dump their gold, you’re going to be the last person out. I think gold is getting demonetized.”
Even Brad Neuman, Director of Market Strategy at Alger, chipped in during an interview,
“Although inflation is often accompanied by rising rates, the problem is that rates can spike dramatically and hurt the returns on gold. That might be one of the reasons it has lagged Bitcoin lately.”
Finally, in the last 12 months, the money supply in the U.S has seen an incline of about 25%, a development that can be a good sign for digital assets. Without it, “Bitcoin might have been a fringe asset,” she added.