Globally renowned macro trader Paul Tudor Jones gave Bitcoin his blessing on Thursday, touting it as an effective store of value in the global economic climate. He also said that it reminds him a lot of gold when he entered the industry in the 1970’s.
Jones, a world renowned macro investor, came out yesterday in vocal support of Bitcoin as a store of value. His fund, the Tudor BVI Fund, is worth around $40bn, so his opinions carry quite a bit of weight.
Jones is no stranger to Bitcoin. He was involved in the 2017/2018 bull run. Quite spectacularly, he managed to close out his position at the $20,000 mark, which is more or less the value of Bitcoin’s all-time high.
He calls it the ‘The Great Monetary Inflation’
By Jones’ estimates, $3.9 trillion has been printed since February, a truly shocking figure. Worse still, is that the Federal reserve has demonstrated that it is perfectly content to keep printing money.
Jones has said that the only thing stopping prices from skyrocketing at the moment is the lack of demand, now that everyone is still confined to their houses. But that will not last for long.
As the director of a very successful fund, Jones is naturally looking to hedge against this oncoming wave of inflation. Jones went on to say, “The best profit maximizing strategy is to own the fastest horse. My bet is that it will be Bitcoin.”
Not being linked to a central bank, and having a finite supply makes Bitcoin a very effective safe-haven in times like these, when fiat currency supplies are being inflated.
Let’s not get ahead of ourselves
As exciting and important as Jones’ comments are, it is important to qualify a few things about his statement. Firstly, Jones had Bitcoin fourth on his list of useful assets for storing value behind gold and even fiat currency.
Secondly, Jones’ fund has been investing in Bitcoin futures rather than Bitcoin itself. Whether these futures were cash or physically-settled futures remains to be seen. This means that we don’t really know whether Jones will be looking to actually obtain bitcoins or just cash from the futures option.
Nonetheless, it is still a big deal that Jones is talking about Bitcoin at all. Even after all of its success, some top calibre investors still shun the mention of cryptocurrency. Therefore, Jones putting it in his letter on Thursday is still an important sign for the market. Due to Jones’ respected nature within the industry a lot of older investors will also take note and may show increased interest in Bitcoin as a result.