The man who broke the Bank of England is about to get on the cryptocurrency bandwagon.
The head of macro-investing at Soros Fund Management; Adam Fisher, has received approval to start trading in cryptocurrencies, Bloomberg Technology reported. The approval presumably came from the hedge fund firm’s founder legendary currency trader George Soros.
Soros seems to be bullish on cryptocurrency; even though he does not believe altcoins can function as currencies. Instead, he sees cryptocurrency as a money transfer tool which makes it valuable.
Is Soros is Bullish on Cryptocurrency?
“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 (BTC) to build a nest egg abroad,” Soros said at the World Economic Forum in Davos Switzerland on 25 January 2018.
Soros thinks cryptocurrency will attract big money and he wants a piece of it. Soros is very familiar with dictatorships and currency he grew up in Hungary during World War II and experienced Nazi and Communist thuggery; and one of history’s worst cases of hyperinflation, first hand.
Soros has made at least one other “bet” on cryptocurrency his company has invested heavily in the online discounter Overstock.com (NASDAQ: OSTK) which famously takes Bitcoin payments, Bloomberg reported. Overstock shares were trading at $35.85 on 6 April 2018.
Bloomberg Technology did not say when Soros Fund Management will invest in cryptocurrencies, what altcoins it would buy, or how much money it would put into them. One reason why Soros might buy cryptocurrencies is obvious as a bet against fiat currencies like China’s Yuan and India’s Rupee.
Soros became an investment legend back in September 1992 when effectively against the pound sterling. Soros successfully bet that the United Kingdom would have to pull out of the European Exchange Range Mechanism (ERM). The Mechanism linked the rate to the German Deutschmark in a precursor to European unification.
Why is Soros interested in Cryptocurrency?
Soros made a lot of money when the Bank of England was forced to pull out of the ERM. Many people regard Soros’ action as the event that pulled the rug out from under the pound, and destroyed the last vestiges of Britain’s global economic empire and ended the UK’s efforts to enter the Eurozone.
An intriguing possibility is that Soros views cryptocurrencies as a mechanism that can end the economic dominance of fiat currencies like the Yuan. Another probable scenario is that old George thinks resource-based economies like Venezuela are close to collapse an event that would send a vast amount of money pouring into the cryptocurrency markets.
Either way, there is a strong possibility that Soros Fund Management or its surrogates will start buying up large amounts of cryptocurrency if the prices for strong altcoins such as Bitcoin, Ethereum (ETH), and Litecoin (LTC) stay low.