Soros Fund Management Says Cryptocurrency Will Still Exist And Has Become Mainstream

The chairman of Soros Fund Management said crypto had become mainstream. (Unsplash)

JAKARTA – Soros Fund Management CEO, Dawn Fitzpatrick, discussed cryptocurrency in an interview with Bloomberg. According to Fitzpatrick, cryptocurrencies will remain and have the potential to become mainstream.

Soros Fund Management was founded by billionaire George Soros and his business partner Jim Rogers in 1970. Soros Fund Management is the leading private investment company in the United States.

When Fitzpatrick was asked about crypto, he stated that crypto "will exist. I think it (crypto) has become mainstream."

According to Fitzpatrick, the position of the number one crypto by market capitalization, Bitcoin, will be displaced by Ethereum's position. This is because BTC uses a Proof-of-Work (PoW) mechanism and allows mining with high-power computing to affect the climate. Meanwhile, Ethereum, which will switch to Proof-of-Stake (PoS) which is claimed to be more environmentally friendly, will receive great attention from the public.

“The only caveat I would say is … the climate impact is going to become increasingly focused so, in that context, I think Ethereum is likely to gain more traction over bitcoin", he added.

Then he explained that the technology that underlies cryptocurrency, blockchain, would have great applications. In addition, the head of Soros Fund Management also shared his views on the US economy which experienced a decline in the first quarter of this year.

“If you look at the GDP figure, I think the most important point is that the reason for the decline is due to net imports, which is negative, which means we import a lot of goods from abroad. And that's because consumer and corporate demand are strong. So I think there is a silver lining in reading those GDP figures", he explained, quoted from Bitcoin.com News.

Next, he revealed the conditions of the recession that can not be avoided. But he did not say when the economic recession will occur. Soros Fund Management executives also discussed high inflation and the Federal Reserve raising interest rates.

“There's no doubt that interest rates will go higher and the Fed will move very quickly. That said, post-inflation rates are still negative, so monetary policy is still very easy."

In his statement, Fitzpatrick stated that a recession was inevitable and likely to be worse than many had expected.