- Billionaire investor Paul Tudor Jones has said he will keep his “small” Bitcoin exposure for life
- The hedge fund manager first bought Bitcoin in 2020 during the US government’s money-printing days
- Jones told CNBC that the limited supply is a critical factor in his thinking
Seasoned investor Paul Tudor Jones will hold his Bitcoin position for life because it is “the only thing that humans can’t adjust the supply in.” The billionaire hedge fund owner first invested in Bitcoin in 2020 having changed his mind on its fundamentals, and recently told CNBC that he’s “sticking with” Bitcoin for the long term due to its power as a hedge against the government’s money printing.
Bitcoin the “Fastest Horse”
Jones emerged as a surprise Bitcoin acolyte in 2020 as the US government began its mass dollar printing program to cope with the coronavirus pandemic, which he called the “great monetary inflation,” stating that Bitcoin had a good chance of being the “fastest horse” in the race for protection against the decreasing value of the dollar.
At the time Jones said he considered gold, Treasuries, some stocks, currencies, and commodities as good alternatives to cash, but that he could not ignore the “growing role for Bitcoin” in such a strategy, with its fixed supply being a key factor in his decision making. Tudor Jones reaffirmed this view to CNBC’s “Squawk Box” Monday, suggesting that he has not been put off by Bitcoin’s price drop since 2021:
From the beginning, I’ve always said I want to have a small allocation to it because it’s the only thing humans can’t adjust the supply in. So I’m sticking with it, and I’m going to always stick with it as a small diversification in my portfolio.
Jones added that both Bitcoin and gold “may not be boring in the future” given the impact that inflation is having on the US economy, and hinted that the worst Federal Reserve rate hikes may be over.