- Billionaire Paul Tudor Jones has emphasized Bitcoin’s value amid the current challenging geopolitical environment, highlighting its role as a potential safe-haven asset
- TudorJones expressed concerns about the US’s fiscal vulnerability and recommended allocating a larger percentage of portfolios to Bitcoin and gold
- Jones has previously endorsed Bitcoin as a hedge against inflation and sees it as a viable choice for investors during uncertain economic conditions
Billionaire hedge fund manager Paul Tudor Jones yesterday emphasized Bitcoin’s value amid a tumultuous geopolitical climate, highlighting the challenging global environment, including conflicts like the Israel-Gaza war and Russia’s invasion of Ukraine while underscoring the US’s fiscal vulnerability. Tudor Jones advocated for Bitcoin and gold as suitable investments and suggested allocating a higher percentage of portfolios to them, expressing concerns that aggressive Federal Reserve interest rate hikes could trigger an economic downturn.
Tudor Jones Continues to Back “Fastest Horse”
Tudor Jones first commented on Bitcoin in May 2020 at the start of the Covid-19 pandemic, calling it the “fastest horse” in terms of a profit-maximizing strategy. This proved to be a good call in the short term as Bitcoin raced from $3,500 in March 2020 to $69,000 in November 2021. In May this year, he upgraded his thesis, saying that he was “sticking with” Bitcoin for the long term due to its power as a hedge against the government’s money printing.
Jones gave his thoughts on the economy to CNBC yesterday, saying that the US is “probably in its weakest fiscal position since certainly World War II” thanks to its debt to GBP, believing that the Israel-Hamas war will usher in a threatening and challenging geopolitical environment which would create a significant risk-off market environment:
As interest costs go up in the United States, you get in this vicious circle, where higher interest rates cause higher funding costs, cause higher debt issuance, which cause further bond liquidation, which cause higher rates, which put us in an untenable fiscal position.
When asked what investors should be leaning towards in these tough times, Tudor Jones said, “I like Bitcoin and I like gold right here,” adding that both assets should “probably take on a larger percentage of your portfolio than historically they would.”
Indeed, some do see Bitcoin as a gold-like asset in its position as an asset uncorrelated to government action, but Bitcoin has failed as a hedge to inflation as many predicted it would, and the idea that it will be seen as a safe haven in the event of an escalation in global financial fragility is optimistic at best.
