George Soros Prepares to Trade Cryptocurrencies
George Soros called cryptocurrencies a bubble in January. Now his $26 billion family office is planning to trade digital assets.
Soros, speaking at the World Economic Forum in Davos, said digital coins cannot function as actual currencies because of their volatility. But he didn’t predict the hard tumble that some observers had forecast at the time.
“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 nest egg abroad,” Soros, 87, said on Jan. 25.
Another billionaire, Alan Howard, made sizable personal wagers — separate from his firm — in cryptocurrencies last year and plans to put more of his own money into digital assets and the blockchain technology behind them.
Soros has already been indirectly betting on crypto. The firm amassed a stake in Overstock.com in the fourth quarter, making it the third-biggest shareholder of the discount e-commerce company.
In March, Overstock.com disclosed that the Securities and Exchange Commission is investigating its proposed ICO. Shares have sunk about 40 percent in the wake of the disclosure.