The investor Paul Tudor Jones has compared Bitcoin with the role played by gold in the 1970s. The digital currency is supposed to serve as a hedge against inflation, which will result from the massive money printing by currently undertaken by central banks.
The founder and CEO of Tudor Investment Corp. published his new stance in a market outlook entitled “The Great Monetary Inflation”. According to a Bloomberg article, Jones argues that the best strategy to maximize profits is to own the fastest horse. Accordingly, Jones announces that if he had to make a forecast, he would bet on the Bitcoin.
Tudor BVI fund holds low single-digit percentage of assets in Bitcoin futures
Jones’ Tudor BVI fund holds just under 2% of its assets in Bitcoin Futures. Jones is thus one of the first major hedge fund managers to adopt Bitcoin due to the central banks’ expansive monetary policy. According to Jones, 3.9 trillion dollars have been printed by the Fed alone since February, representing 6.6% of global economic output. The speed with which this process has taken place impressed even Jones, a market veteran, so much so that he was “speechless” about what had happened. Before Paul Tudor Jones recognized the growing role of Bitcoin, he had been hedging gold, government bonds, stocks, currencies and commodities.
Paul Tudor Jones has been trading Bitcoin since 2017
According to the report, Jones had already tried trading Bitcoin in 2017 and then ended the trade at a high of almost 20,000 US dollars. Now he wants to use Bitcoin more as a store of value and thus counteract inflation. Jones includes four characteristics in his considerations, which convinced him of Bitcoin’s ability to be a “Store of Value”. Such characteristics include purchasing power, trustworthiness, liquidity and the transferability of the currency.
Jones also draws a comparison with his entry into gold trading and explains that Bitcoin has great similarities with gold. Jones made his debut in the financial industry by trading cotton futures and is an economist from the University of Virgina.
*Originally published in German at CVJ.ch