Soros Fund Management, a US investment fund, is reported to start investing in cryptocurrencies. The announcement has brought about mixed reactions from the crypto industry as George Soros, the head of the fund, had once commented that the cryptocurrency craze was a “bubble.”
Bloomberg reported that the fund’s global macroeconomic investment head Adam Fisher was already given internal approval for the start of cryptocurrency operations.
Crypto enthusiasts are either supportive or skeptical of the decision. Some believe that the move of a successful and well-known investor towards crypto investment may signal the start of big, institutional investors coming to the crypto space which may then cause regulations to become more lax.
Others believe that, given George Soros’ previous comments on cryptocurrency, his sudden interest in crypto signals the start of big investors taking advantage of the crypto market’s lows to disrupt the market and get “easy money” off of it.
At the World Economic Forum held on January 25, Soros said that bitcoin cannot be a currency because of its volatility. He argued that a cryptocurrency’s value is speculative:
“Bitcoin is not a currency because a currency is supposed to be a stable source of value and the currency that can fluctuate 25% in a day can’t be used, for instance, to pay wages because wages drop by 25% in a day. It’s a speculation. Based on a misunderstanding.”
Soros is most known as “The Man Who Broke the Bank of England” who caused “Black Wednesday.” He had shorted the Pound in 1992 which caused the British government to withdraw it from the European Exchange Rate Mechanism.
Skeptics believe that he may be thinking of doing the same to cryptocurrencies.