Dawn Fitzpatrick – CEO and CIO at Soros Fund Management – doubled down on her pro-crypto stance, predicting the asset class is “here to stay.” She believes that climate impact will play a vital role in the industry, and as such, Ethereum “is likely to gain some more traction than Bitcoin.”
Ethereum to Outperform Bitcoin?
In an interview for Bloomberg, the American investment banker Dawn Fitzpatrick outlined the recent progress of the cryptocurrency sector. Specifically, she opined that “it’s gone mainstream” with Fidelity’s decision to allow investors to add bitcoin to their retirement 401(k) plans.
Fitzpatrick thinks the environmental impact will be an important feature in the future, and it could define which digital assets will pick up steam. Having that said, Ethereum has a chance to “gain more traction” than Bitcoin since it is on its way to shifting from the energy-intensive proof-of-work mining model to proof-of-stake.
The process, known as “The Merge,” is highly anticipated within the community as Vitalik Buterin’s blockchain brainchild will have a greener focus. Currently, Ethereum (like Bitcoin) requires a significant amount of energy to power its supercomputers. According to some estimates, it consumes approximately 112 terawatt-hours of electricity per year, more than what Pakistan or the Philippines use.
A few weeks ago, Buterin said the “The Merge” is likely to happen at the end of this summer or the beginning of autumn.
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Fitzpatrick touched upon blockchain technology, too, stating that companies in the space “have massive treasury accounts,” which creates a near-term vulnerability. At the same time, “blockchain technology is going to have some great applications,” the executive forecasted.
Keen on Bitcoin, too
It is worth mentioning that Fitzpatrick is also in favor of the primary cryptocurrency, despite her more bullish views on Ethereum. Several months ago, she argued that BTC had emerged as more than just an inflation hedge:
“I’m not sure Bitcoin is only viewed as an inflation hedge here. I think it’s crossed the chasm to mainstream.”
Furthermore, she said Soros Fund Management owns some digital assets (though not a huge amount). The company started trading BTC last summer, while other cryptocurrencies have also caught its attention.
Soros Fund Management is a private investment management firm based in New York. Established in 1970 by George Soros, it is currently among the most profitable entities in the hedge fund industry. As of the end of 2021, it had over $7 billion under management.
Featured Image Courtesy of Financialish
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