“It’s everything from exchanges, asset managers, custodians, to the mundane like tax reporting on your crypto gains and everything in between.”
So says Dawn Fitzpatrick (pictured), the chief investment officer of Soros Fund Management, in an interview with Bloomberg.
She said that crypto infrastructure is at an inflection point, and where it comes to crypto more generally, she said we’re at 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’ve increased money supply in the US by 25%. So there’s a real fear of debasing of fiat currencies.”
In contrast bitcoin has a finite amount of supply which halves every four years in addition to bitcoin being easily storable and easily transferable, Fitzpatrick said.
“When you look at gold’s price action, in the context of a fairly robust inflation narrative of late, it’s struggled getting traction and I think that’s because bitcoin is taking some of its buyer base away,” Fitzpatrick said.
Fitzpatrick was reluctant to say whether she does or does not own any bitcoin, arguing that central bank digital currencies are coming sooner than we think with China undertaking trials of them.
Due to strategic and geopolitical interests, China will push this fiat crypto to the world, which is a potential threat to bitcoin and other cryptos, she said.
However, “I think it will be temporary. I don’t think they will be successful in permanently destabilizing bitcoin.”
Soros recently invested in NYDIG and a little known data provider called Lukka.
They’ve clearly made a decision to look at all developments related to crypto infrastructure, but they appear to be hesitant to invest in crypto itself.
The reason is presumably because they seem to have taken a wait and see approach especially in light of what they think as a potential challenge from fiat cryptos.
However it is extremely unlikely any state will upend and potentially destroy their financial system by so fully taking control of fiat money to the point where commercial banks play no role any further.
Some have suggested commercial banks could limit the user withdrawal of fiat crypto, but then it isn’t fiat crypto anymore, it is just current fiat.
The wolf propaganda of China therefore has maybe fooled them, but her conclusion is interesting as it indicates they’re half way towards becoming bitcoiners.