Dawn Fitzpatrick – CFO of Soros Fund Management – recently focused on what makes cryptocurrency interesting to her. Contrary to comments from months ago, she has now said that bitcoin is more than an inflation hedge, citing other use cases.
Fitzpatrick: What Makes Cryptocurrency Interesting
Fitzpatrick broadcast Her thoughts in an interview with Bloomberg on Tuesday. After mentioning Bitcoin’s recent rally to $50K, Fitzpatrick questioned one of her previous assumptions about cryptocurrency:
“I’m not sure Bitcoin is being seen as an inflation hedge here. I think it has crossed the chasm into the mainstream.”
She went on to cite the $2 trillion market capitalization of the cryptocurrency, and more than 200 million digital asset users worldwide. With this, you see more than just a new asset class, but an entirely thriving industry and technology.
“Coins themselves are less interesting than DeFi use cases and things like that.” said the financial director.
Fitzpatrick added that Soros fund management owns some cryptocurrency – but not much. The company started trading Bitcoin months ago and has monitored the space since 2018. Fitzpatrick said the organization was doing more than just “kick the tires.”
Months ago, Fitzpatrick’s views on Bitcoin were slightly different. She described it as a commodity rather than a currency and cited the decline of fiat currency as a primary driver of its demand.
Could Fitzpatrick Be Interested In Altcoins?
Although Soros Fund Management has only confirmed bitcoin trading, Fitzpatrick’s comments may indicate interest in altcoins as well. Bitcoin is not used much by people and companies for decentralized finance at the moment. The development of smart contracts and support for NFTs is mostly the domain of Ethereum and other blockchain networks.
Meanwhile, to the extent that people use cryptocurrencies to pay for goods, services, and labor, stablecoins are the primary tool for that. Tether – the most popular stablecoin – currently has more than twice the trading volume of Bitcoin.
Other large organizations seem to favor DeFi as well. In Central, Northern and Western Europe, more than 80% of large enterprise crypto transactions were sent to DeFi protocols in June 2021.
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