- Paul Tudor Jones says Bitcoin reminds him of gold in the 1970s
- Bitcoin can be the “fastest horse” of all the hedges against governments and their unlimited money printing
- Jones has bought Bitcoin futures, rather than actual Bitcoin
Paul Tudor Jones, CEO of Tudor Investment Corp which has $39 billion worth of assets under management, has said that Bitcoin reminds him of gold in the 1970s, and that he sees it as a hedge against inflation of the US dollar. In a boost to Bitcoin’s standing in the financial world, Jones told investors that Bitcoin was a great asymmetric play and that the hedge fund now owned a portion of Bitcoin futures in its portfolio.
In a note sent to investors and seen by Forbes entitled The Great Monetary Inflation, Jones praised Bitcoin’s potential profitability given the Treasury’s multi trillion-dollar money printing escapades in the wake of the coronavirus:
The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.
Jones calculated that $3.9 trillion in cash has been printed since February, the equivalent of 6.6% of global economic output. This he said has left “even a market veteran like myself…speechless,” calling the event “the Great Monetary Inflation – an unprecedented expansion of every form of money unlike anything the developed world has ever seen.”
In casting around for hedges, Jones says he considered gold, Treasuries, some stocks, currencies, and commodities, but could not ignore the “growing role for Bitcoin” in such a strategy, with the cryptocurrency reminding him of gold in 1976 when he first began trading, when it was on its way to all time highs.
Jones Comments as Bitcoin Hits $10,000
Jones’ comments came on the day Bitcoin crossed $10,000 following a very Bitcoin-like runup from $3,850 back in March, in the wake of a market-wide collapse due to the coronavirus pandemic. Naturally, his comments were received with ecstasy by the community, who see Jones’ endorsement as another example of ‘the herd’ Mike Novogratz spoke of in 2017 that were coming round to the idea of Bitcoin.
However, as one of our interviewees @Super_Crypto reminded us, Jones has not bought any physical Bitcoin – he has bought Bitcoin futures, which is a very different kettle of fish:
After $10k celebration, lets see which BTC PTJ is buying
— Gold, Silver, Geopolitics & Bitcoin (@Super_Crypto) May 8, 2020
Regardless of what type of Bitcoin he has bought however, it is Jones’ sentiment that will echo loudest. He is a widely respected hedge fund manager, and his endorsement of Bitcoin from an ideological point of view is exactly what Bitcoin needs if it is to show that it has evolved from a dark web currency to a hedge against world governments and their disastrous financial management.