American billionaire hedge fund manager Paul Tudor Jones has recently become more bullish on Bitcoin. He declared cryptocurrency the best hedge against inflation and now compares investing in Bitcoin to early tech stocks like Apple and Google. “I think we’re in the first inning of Bitcoin and it’s got a long way to go,” he said.
Paul Tudor Jones Rising Boom on Bitcoin
In an interview with CNBC Squawk Bux on Thursday, Paul Tudor Jones explained why it is now more bullish on Bitcoin. Jones founded Tudor Investment Corp., an asset management firm headquartered in Stamford, Connecticut. He became famous after predicting the 1987 stock market crash and making a profit.
Billionaire investors drew the attention of the crypto community in May when it revealed on the show that it had invested about 2% of its assets in Bitcoin. Now, four months later, the price of Bitcoin has risen more than 46% and news of a boom is coming, such as a recent announcement by PayPal to support cryptocurrencies, including buy-in, as well as its platform.
Jones was asked if this development has changed his BTC investment decisions, especially as he buys more BTC or sells some. He clarified by repeating his reason for choosing Bitcoin and recommending it to his customers earlier this year. “Back in March and April, given the monetary policy pursued by the Fed, the incredible quantitative easing that they were doing and what other central banks were doing, it became really clear, we were at an unprecedented time,” he explained. Noting the additional problems caused by the Covid-19 epidemic, he said, “You started thinking about how to protect yourself against inflation.” The Federal Reserve has also announced a major policy change to keep inflation in check.
The founders of Tudor Investment Corp. are explaining that they recommend Bitcoin as an inflationary trade like gold, copper, S&P GSCI Commodity Index and as a bit longer yield curve. He added:
I came to the conclusion that the best bitcoin inflation trade, the defensive trade you take would be the best.
He then outlined why Bitcoin is better than other assets for hedging against inflation. Examining the overall market caps and characteristics of all the inflation businesses, he said that Bitcoin “has a very small cohort of people investing in it, it was portable, it was liquid, it had various characteristics that made it a big hedge of inflation.” When Jones pointed out that “one thing is for sure [bitcoin] It wasn’t that it lacked integrity and long-term sustainability, ”he insisted, adding that“ every day he goes through, of course, he gets from it. It benefits on reliability and integrity. “
The billionaire hedge fund manager admitted he doesn’t appreciate what Bitcoin had, while saying he invested about 2% in cryptocurrency back in May. “I didn’t appreciate it and now that I know what it feels like to be a technical investor, remember I don’t really trade in individual stocks.” Confirming that he is “just a macro trader”, Jones insisted:
Bitcoin has many characteristics of being an early investor in a tech company… such as investing with Steve Jobs and Apple Pal, or investing in Google early.
Jones went on to say: “I’ve got a small single-digit investment in Bitcoin. Just this. I am not a bitcoin flag bearer. ”
After recommending Bitcoin and announcing its holdings in May, Paul Tudor Jones said he “knows how many different people on Bitcoin are surrounded by God.” Admitting he didn’t know it at the time, he said: “But that’s what I learned, and what amazes me is that there’s this huge, contradictory contingent of really, really smart and cultured people in Bitcoin who believe in it.” He explained that there are supporters of Bitcoin, crowds of people around the world, who are “dedicated to understanding that Bitcoin succeeds in becoming a general store of value in it, and is practical to boot, at a very basic level.”
“It never had an inflation hedge where you have a kicker or you have the intellectual capital behind it,” he said, adding that it “makes me more creative” with bitcoin. Jones Conclusion:
Now more than I like Bitcoin. I think we are in the first inning of Bitcoin and it has got a long way to go.
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