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Bitcoin is more than an inflation hedge
Dawn Fitzpatrick – CFO of Soros Fund Management – recently reflected on what makes cryptocurrencies interesting to her. Contrary to comments from months ago, she now said Bitcoin is more than an inflation hedge and cited other use cases. Fitzpatrick: What Makes Cryptocurrencies Interesting Fitzpatrick aired her thoughts in an interview with Bloomberg this Tuesday. After mentioning Bitcoin's recent climb back to $50,000, Fitzpatrick questioned one of her previous assumptions about crypto: "I'm not sure Bitcoin is viewed here as just an inflation hedge. I think it's crossed the precipice into the mainstream." She …
Bitcoin is more than an inflation hedge
Dawn Fitzpatrick – CFO of Soros Fund Management – recently reflected on what makes cryptocurrencies interesting to her. Contrary to comments from months ago, she now said Bitcoin is more than an inflation hedge and cited other use cases.
Fitzpatrick: What makes cryptocurrencies interesting
Fitzpatrick broadcast her thoughts in an interview with Bloomberg this Tuesday. After mentioning Bitcoin's recent climb Back to $50,000, Fitzpatrick questioned one of her previous assumptions about crypto:
"I'm not sure Bitcoin is viewed here as just an inflation hedge. I think it's crossed the precipice into the mainstream."
She went on to mention the cryptocurrency market cap of over $2 trillion and over 200 million digital asset users around the world. She sees this as more than just a new asset class, but rather a booming industry and technology as a whole.
“The coins themselves are less interesting than the use cases of DeFi and the like.” said the CFO.
Fitzpatrick added that Soros Fund Management owns some cryptocurrencies – although not many. The company began Trade Bitcoin months ago and has been keeping an eye on the space since 2018. Fitzpatrick said the organization did more than just “kick the tires.”
Months ago, Fitzpatrick's views on Bitcoin were somewhat different. She called it was more of a commodity than a currency and cited the debasement of fiat currency as the main driver of its demand.
Could Fitzpatrick be interested in altcoins?
Although Soros Fund Management has only confirmed trading in Bitcoin, Fitzpatrick's comments could also indicate interest in altcoins. People and companies are not currently using Bitcoin much for decentralized finance. Developing smart contracts and supporting NFTs is primarily the domain of Ethereum and other blockchain networks.
To the extent that people use crypto to pay for goods, services, and labor, stablecoins are the primary vehicle for this. Tether – the most popular stablecoin – currently has more than double the trading volume of Bitcoin.
Other major institutions also seem to favor DeFi. Central, Northern and Western Europe accounted for over 80% of large institutional crypto transactions sent on DeFi protocols in June 2021.
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