The recognized investor, George Soros, has taken a U-turn in his position towards cryptocurrencies. The billionaire magnate will start trading cryptocurrencies just three months after he said that virtual currencies were a ‘typical bubble.’
George Soros Invests in Cryptocurrencies
As reported by Bloomberg, his $26 billion family office is planning to trade digital assets. Adam Fisher was able to get the internal approval in order to start trading virtual coins in the last months.
During the World Economic Forum that was held in Davos at the beginning of the year, Georges Soros said that digital coins cannot be used as actual currencies due to their high volatility.
Indeed, Bitcoin and other cryptocurrencies in the market tend to fluctuate severely in a matter of hours. From one day to the other, 20% appreciations or deprecations are very common.
“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 net egg abroad,” said Soros.
As of right now, Bitcoin has lost over 65% of its price since the all time high registered in December 2017. Another important figure in the financial world, former hedge fund manager, Mike Novogratz, is working with JP Morgan in order to effectively compete against the threat cryptocurrencies pose to the current banking system.
Soros has been investing, indirectly, in the cryptocurrency market. His firm has an important stake in overstock.com, being the third largest shareholder of the company. In August 2017, Overstock.com was the first major retailer to accept cryptocurrencies as a means of payment. Besides that, the company was working in order to offer a cryptocurrency exchange in which digital coins could be traded.
Cryptocurrency investors all over the world could see an increased attempt from governments to regulate the cryptocurrency market. Central banks form China and South Korea have imposed strict regulations in the virtual currency market. This situation could strongly affect cryptocurrency enthusiast and investors who have placed their bets in this volatile assets.
Images Forbes and LBC