Seeing Massive Upside In Bitcoin, Like Investing In Apple Or Google Early Is Billionaire Paul Tudor Jones

Why Is Jones Bullish?

Becoming more bullish on bitcoin is American billionaire hedge fund manager Paul Tudor Jones. Comparing investing in bitcoin now to investing in early tech stocks, he declared the cryptocurrency is the best hedge against inflation. He was found to be saying that it’s got a long way to go as he thinks they were in the first inning of bitcoin. 

Paul Tudor Jones Increasingly Bullish on Bitcoin

In an interview with CNBC Squawk Box on Thursday, Paul Tudor Jones explained why he is more bullish on bitcoin now. Headquartered in Stamford, Connecticut, Jones founded Tudor Investment Corp. an asset management firm. After predicting and profiting from the 1987 stock market crash, he became famous. 

Back in May when he revealed on the show that he had invested about 2% of his assets in bitcoin, the billionaire investor caught the attention of the crypto community. In this scenario, it was found that Bitcoin’s price has thereby rallied more than 46% as also there comes a string of bullish news such as the recent announcement by PayPal supporting cryptocurrencies including bitcoin on its platform four months later. 

Particularly if he was buying more BTC or selling some, Jones was asked if these developments have changed his BTC investment decisions. Further with this reason for liking bitcoin and recommending to his clients early this year, he clarified by reiterating that:

Given the monetary policy that was being pursued by the Fed, the incredible quantitative easing they were doing and other central banks were doing, that they were in an unprecedented time back in March and April it became really apparent. 

He said as he noted additional problems brought about by the Covid-19 pandemic saying about how you defend yourself against inflation, one has to begin thinking. Announcing a major policy shift to push up inflation is the Federal Reserve. 

What Does He Explain About Bitcoin?

Continuing to explain that he recommended bitcoin as an inflation trade like gold, copper, the S&P GSCI commodity index, and being long the yield curve was the founder of Tudor Investment Corp. Moving on he added that: 

The defensive trades that you would take particularly was concluded with bitcoin going to be the best inflation trades. 

For hedging against inflation, he then outlined why bitcoin is better than other assets. He said that the bitcoin was coming as a very small coterie of people investing in it, it came to be portable, it was liquid, having a variety of characteristics that made it a great inflation hedge examining the overall market caps and characteristics of all inflation trades. It didn’t have integrity and long-term staying power as Jones pointed out the one thing bitcoin didn’t have, emphasising it gains on that as every day that goes by of course gaining on credibility and integrity. 

When he said he invested about 2% in the cryptocurrency back in May, the billionaire hedge fund manager admitted that he did not appreciate what bitcoin had. He conceded that remember that he doesn’t really trade individual stocks as he didn’t appreciate and now he knows what it must feel like to be a tech investor. Jones asserted affirming that he is just a macro trader: 

Like investing with Steve Jobs and Apple or investing in Google early, bitcoin has a lot of the characteristics of being an early investor in a tech company. 

Why Is Bitcoin Popular As An Investment?

Further on Jones revealed that he has got a small single-digit investment in bitcoin and that’s it so he is not a bitcoin flag bearer. 

Paul Tudor Jones said he got besieged by God knows how many different people on bitcoin after recommending bitcoin and revealing his holdings. He said the following admitting that he did not know it at the time:

Bitcoin has this enormous contingent of really smart and sophisticated people who believe in it which was what he learned and what he was so surprised by. Thereby as it comes crowdsourced from all over the world it is who is dedicated to seeing bitcoin succeed in it thereafter becoming a commonplace store of value and transactional to boot at a very basic level were bitcoin with supporters as he explained. 

The Conclusion 

He said it makes him even more constructive on bitcoin proclaiming that he never had an inflation hedge where you have a kicker that you also have great intellectual capital behind it. He further concludes that even more now than he did then, he likes bitcoin. He thinks it had got a long way to go as he also thinks he is in the first inning of bitcoin.