Without this, ‘Bitcoin might have been a fringe asset’
With Bitcoin and the larger cryptocurrency market seeing happy days over the last few weeks and months, many popular and renowned institutional investors and fund managers are rushing to jump in, trying to not miss the train. It would seem that Soros Fund Management is one of them.
According to Soros Fund Management’s CIO Dawn Fitzpatrick, the U.S economy, at the moment, could be paving the way for a critical inflection point for Bitcoin. In a recent interview given to Bloomberg, Fitzpatrick shared her optimism with which her firm has invested in multiple companies delivering crypto-infrastructure like exchanges, asset managers, and wallets.
Over the past few months, various MNCs, government agencies, and Wall Street have started to acknowledge Bitcoin. In fact, a recent report published by Citibank read that,
“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 lieu of Bitcoin’s growing prominence, Gold and Bitcoin supporters are likely to keep arguing with each other about which asset class holds greater significance these days. Fitzpatrick commented on the same too, stating,
“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 predicted that in the future, investors are more likely to opt for Bitcoin over the yellow metal. In an interview with Andrew Henderson of Nomad Capitalist, Saylor cautioned investors to sell their gold, and buy Bitcoin instead. He claimed that “gold is dead money” and predicted that “other people are going to sell their gold.” According to Saylor,
“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.