Will Bitcoin continue to make more gains?
"Bitcoin", the most valuable cryptocurrency in the world, returned to rise after obtaining a prominent new supporter, as it found support to rise to about 55,000 dollars, after news that the investment company founded by billionaire George Soros owns Bitcoin.
It is noteworthy that Soros, who is famous for making large amounts of money investing in cryptocurrencies, has been trading in bitcoin for the past few months.
The head of Soros Fund says that bitcoin has long-term potential, adding, "I'm not sure that bitcoin is seen as a hedge against inflation."
Don Fitzpatrick, chief executive and chief investment officer at Soros Fund Management, said in an interview at the Bloomberg Invest global summit late Tuesday that Soros fund management has "a few coins...but not a lot."
Bitcoin and other cryptocurrencies have risen sharply this year, despite concerns about a crackdown in China and the possibility of tougher regulations in the US, thanks to factors such as higher interest rates and the fact that more major financial firms are investing in cryptocurrencies.
The value of all bitcoins now in circulation is back in excess of $1 trillion - more than Facebook's market cap - and all cryptocurrencies collectively represent $2.3 trillion in circulation, matching the market capitalization of the most valuable stock: Apple.
El Salvador recently became the first country to adopt Bitcoin as a legal tender, and Bitcoin enthusiasts argue that the cryptocurrency should see near-term benefits from inflationary pressures and higher bond yields, as government-backed fiat currencies such as the dollar, euro and yen lose some of their purchasing power as prices rise.