Posted 11 months ago | by Ben Armstrong
Billionaire Investor Paul Tudor Jones – Buy Bitcoin!
Legendary hedge fund manager and billionaire Paul Tudor Jones announced that he thinks Bitcoin and gold are a big buy at the moment. Bitcoin, much like gold, has an extremely limited supply, and the central banks of the world are in a race to print loads of money.
Jones said that he authorized his hedge fund - Tudor BVI - to use a small portion of its assets to invest in Bitcoin futures contracts. This fund has $21 billion USD in assets at the end of March, and if the fund allocates 1% in this way, then its investment would amount to 210 million USD in BTC futures.
Jones also said he has doubled the money he put into BTC back in 2017. Bitcoin's price has nearly doubled since its March 2020 lows as well, which means that a pullback could be coming in the short or medium term.
Paul Tudor Jones: Bitcoin v. ‘The Great Monetary Inflation’
In his letter, Jones warned of serious monetary inflation, and thinks that Bitcoin a great way to buy protection in this situation. He realized that Bitcoin could be a good hedge against inflation because it is a good store of value, is trustworthy, has liquidity, and is extremely portable.
Although Jones' scored bitcoin lower than gold and other assets, what surprised him the most was how well it actually scored. Specifically, BTC reached 66% of gold as a store of value, but it only reached 1/60 compared to gold’s outstanding value. So he thinks that the price of Bitcoin is really not correct.
Don't Underestimate the Value of Portability
With the exception of a few semi-failed states (Venezuela, South Africa), most people don't think much about being able to take their assets with them or make an international transfer of funds.
Here is the thing, when inflation picks up, and the monetary system is falling apart, governments and central banks tend to impose capital controls (see South Africa for a real-world example). This means that while gold has a vastly longer history as money, Bitcoin has the edge when it comes to being able to move across borders.
In a worst-case scenario, a person could even transfer their crypto holdings to a wallet, and then carry only the keyword seed in a disguised form across a border. There would be absolutely no way to know they had anything of value, let alone a stash of BTC that was worth millions.