George Soros tries his hand at Cryptocurrencies, road ahead looks Shakya
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George Soros tries his hand at Cryptocurrencies, road ahead looks Shakya

Fortune.com reported that George Soros is considering digital currency as a possible investment platform. A family member of the billionaire was granted the permission to trade cryptocurrencies.

Digital currency has often been avoided by traditional money managers due to an insufficient track record, volatility, and absence of gatekeepers.

The approval was granted to the head of macro investing for Soros Fund, Adam Fisher but the firm has not given any official statement about the new policies.

The fund is being positive over bitcoin amidst its downfall in 2018.  The popular cryptocurrency was tumbling around the $6,600 mark considering its massive growth of 20,000 dollars in December 2017.

According to Hedge Fund Research funds that invested directly in crypto trade lost 52 percent as an average in their value. In the same period, Hedge Funds was able to gain 0.4 percent.

The harsh outlook of governments around the globe towards digital currency has been the main reason for investors to pull back their funds. Moreover, bitcoin’s lackluster performance has not sparked interest in new and casual investors.

On the other hand, funds that invested in cryptocurrencies in 2017’s beginning have started to deliver huge profits. The average return for these funds is 2,908 percent in comparison to a 9 percent gain for Hedge Funds.

As per Autonomous Research, around 167 digital currency-related funds were introduced, and 20 have started functioning this year.

It should also be noted that George Soros had acknowledged cryptocurrencies as a bubble of misunderstanding. Bitcoin.com reported about the World Economic Forum 2018 in Davos, Switzerland, in which Soros said, “cryptocurrency is a misnomer, and it’s a typical bubble which is always based on some kind of misunderstanding.” The statement was an answer to a question that asked him to tell his speculations about virtual currencies.

He further added, “Currently [bitcoin] is used mostly for tax evasion and the … for the … people in the … the rulers in dictatorships to build a nest egg abroad. Recently, just now, there was a conference where instead of discussing conditions in Russia, they mainly discussed bitcoin because that’s what the rulers were interested in.”

Although Soros does not participate in the daily operations of his fund yet, his decisions are all binding. His actions do alarm other major fundraising firms as taming digital currency can give huge profits and complete control over the market.

Currently, investors around the world are struggling to trust crypto as governments have not been able to provide clarity about its role in the industry. The central bank of India has asked all banks to cease their crypto related operations. The Chinese government has banned crypto mining and any transaction that involves virtual money. In a similar effort to control cryptocurrency, Japan has faced objection from its crypto community in the form of a complete shutdown of operations by two exchanges. If the US launches an identical guideline, Soros Fund could lose in the short run. Soros and other fund managers invested in cryptocurrencies must not find better ways to protect their funds and possibly rethink their relationship with cryptocurrencies.

About the author

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John Creech

John is a Tech Journalist. He has been passionate for the cryptocurrencies for over 4 years now. He loves writing about technological advancements and always seeks to analyse what future will bring to us.

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