Bitcoin is at its “inflection point” caused by the current global economic situation, said Dawn Fitzpatrick – the Chief Investment Officer of Soros Fund Management.
However, she also warned that the upcoming launch of CBDCs could harm the first-ever cryptocurrency in the short-term.
BTC’s Inflection Point
Founded in 1969 by Georgi Soros, Soros Fund Management is a privately owned hedge fund sponsor investing in public equity and fixed income markets. The organization’s CIO recently spoke about the growing cryptocurrency space in a Bloomberg interview and said that the whole industry is “very interesting.”
She noted that the Wall Street giant has already made several investments in the infrastructure and is looking to reaffirm its support.
“When it comes to crypto generally – we are in a really important moment in time. Something like bitcoin might have stayed a fringe asset, but for the fact that over the last 12 months, we have increased the money supply by 25% – so there’s a real fear of debasing fiat currencies.
When you think about bitcoin, I don’t think it’s a currency; it’s a commodity. But it’s a commodity that’s easily storable, easily transferrable. It has a finite amount of supply, and that supply halves every four years.”
Soros Fund Management has previously displayed a somewhat controversial approach towards the primary cryptocurrency in the past. The founder called BTC a “typical bubble” in mid-2018, but the organization started trading bitcoin and other crypto assets just a few weeks following later.
Could CBDCs Pose a Threat?
With numerous governments and central banks exploring and developing their own central bank digital currencies (CBDCs), the crypto community has debated for some time whether or not those innovations would harm BTC and its role in the digitizing world.
Fitzpatrick touched upon this topic and talked about China, which is arguably the most advanced nation on the matter. She believes that the world’s most populated country would try to impose its CBDC on other nations due to geopolitical reasons. Furthermore, the sees the potential launch of such a product as a concern for bitcoin, but only in the short-term.
“I think that it is a real threat [to bitcoin], but I think it will be temporary. I don’t think they [CBDCs] will be successful in permanently destabilizing bitcoin.”