George Soros’s opinion on bitcoin has changed radically in three years. For the famed 91-year-old Hungarian-American investor and billionaire, this digital currency has gone from being a “typical bubble” to a “popular phenomenon” that is being used as a hedge of value against inflation.
“Cryptocurrencies are a typical scam and bubble that is always based on some kind of misunderstanding. Bitcoin is not a currency because a currency is supposed to be a stable store of value and a currency that can fluctuate 25% in a day. It cannot be used, for example, to pay salaries because salaries could drop 25% in one day, “Soros went on to say in 2018.
Now his opinion has changed to the point of financially backing bitcoin. Dawn Fitzpatrick, CEO and CFO of Soros Fund Management, the company that handles the tycoon’s investments, told Bloomberg last week that Soros owns “some bitcoins, but not a lot.” A news that could be behind the growth of the value of the coin to $ 55,000.
Soros’s reason for starting to trade bitcoin is as part of a commercial strategy that seeks to expand and diversify his range of digital assets. This is how Soros joins the group of entrepreneurs and billionaires who begin to support investment in cryptocurrencies, with people like Mark Cuban and Elon Musk carrying out these types of actions before.
From Soros Fund Management they believe that the potential of bitcoin still has a greater long-term journey. “I’m not sure that bitcoin is seen as just an inflation hedge. It has crossed the gulf into the mainstream,” Fitzpatrick said.