Hedge fund manager, philanthropist and conservationist Paul Tudor Jones, who founded the Tudor Investment Corporation, has invested in Bitcoin (BTC) in order to hedge against inflation, according to a Bloomberg post published on May 7.
Jones’ statements on Bitcoin’s were quite unrestrained in its approval of the asset class. Known for his ability to read market momentum, Jones’ word on Bitcoin seems to echo that idea, having said,
The best profit-maximizing strategy is to own the fastest horse [...] If I am forced to forecast, my bet is it will be Bitcoin.
Investors and analysts have repeatedly talked about how Bitcoin has outperformed major indices like the S&P 500 - which it continues to do, despite the cryptocurrency market in more recent times having some tentative correlation with the stock markets.
Bloomberg reports that Jones’ decision to invest in Bitcoin futures via his BVI fund, which reportedly makes for less than 10% of the portfolio, was a result of the the several stimulus packages that many governments have ordered in order to combat the effects of the COVID-19 pandemic - something Binance CEO Changpeng Zhao and fellow billionaire investor Mark Cuban have discussed as well.
He describes these measures as the “Great Monetary Inflation”,
It has happened globally with such speed that even a market veteran like myself was left speechless. We are witnessing the Great Monetary Inflation - an unprecedented expansion of every form of money unlike anything the developed world has ever seen.
In line with a Bloomberg report earlier this month, Jones believes that the pandemic could push people towards Bitcoin. With Bitcoin often being referred to as ‘digital gold’, perhaps most telling of all was Jones comparison of Bitcoin to gold,
Bitcoin reminds me of gold when I first got into the business in 1976.