George Soros could spark Bitcoin resurgence as billionaire’s fund backs crypto over gold

George Soros: Brexit is an immensely damaging process

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The price of Bitcoin enjoyed a rise on Monday, surging by 10 percent having endured a big slump after reaching an all-time high just a couple of weeks ago. It saw $15,000 (£10,800) knocked off its value, and fell below $50,000 (£35,000) for the first time since March. It is currently trading at £39,000, a slight uptick from where it has been this week. This comes as many fear the US Government could hit Bitcoin with regulations due to environmental concerns. Another driver behind Bitcoin’s rise in value has been the endorsement or condemnation of crypto assets by influential billionaires.

Billionaire entrepreneur Elon Musk sparked a Bitcoin frenzy in February after his company Tesla bought $1.5billion’s (£1.1billion) worth of the cryptocurrency.

Tesla added following its announcement: “Moreover, we expect to begin accepting Bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”

A similar surge could happen again if comments by Mr Soros’ fund are anything to go by.

Last month, the chief investment officer of Soros Fund Management Dawn Fitzpatrick said that Bitcoin is taking buyers away from gold.

She said: “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.”

However, Ms Fitzpatrick did warn that the Bitcoin-inspired central bank digital currencies that are in development around the world could pose a “potential threat” to the adoption of Bitcoin and other cryptocurrencies—but she remains upbeat in the long-term.

“I think it is a real threat, but I think it will be temporary. I don’t think they’ll be successful in permanently destabilising Bitcoin.”

Mr Soros hasn’t always been in favour of crypto.

In 2018, he described Bitcoin as a bubble, and said it represents a safe haven for authoritarian regimes.

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He added: “Normally when you have a parabolic curve, eventually it has a very sharp break.

“As long as you have dictatorships on the rise, you will have a different ending, because the rulers in those countries will turn to Bitcoin to build a nest egg abroad.

“But it’s nevertheless a typical bubble, which is always based on a misunderstanding like the tulip mania.

“But the blockchain technology can be put to positive use and we use it actually in helping migrants to communicate with their families and to keep their money safe and carry it with themselves.”

Mr Soros made the comments at the World Economic Forum in Davos, as quoted by Bloomberg.

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