George Soros’ CIO Says Bitcoin ‘Taking Buyer Base Away’ From Gold

The chief investment officer of the second most successful hedge fund in history says that Bitcoin is stealing buyers away from gold.

In a new interview with Bloomberg Finance and Markets, Dawn Fitzpatrick of Soros Fund Management revealed that the fund was invested in the crypto space.

“We think the whole infrastructure around crypto is really interesting and we’ve been making some investments into that infrastructure and we think that is at an inflection point. I’d say it’s everything from exchanges, asset managers, custodians, to the mundane tax reporting on your crypto gains, and everything in between. We think that’s interesting so when it comes to crypto, generally, I think we’re at a really important moment in time in that something like Bitcoin might have stayed a fringe asset but for the fact that over the last 12 months we’ve increased the money supply in the US by 25%, so there’s a real fear of debasing of fiat currencies…

It’s a commodity that’s easily storable, it’s easily transferable, the IRS (Internal Revenue Service) classifies it as a physical asset, it has a finite amount of supply, and that supply halves every four years so I think it’s interesting.”

The CIO adds that in her view, gold’s underperformance as of late is probably related to Bitcoin.

“I think when you look at gold 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.”

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