Jones, writing in an investor note sent this May, noted that Tudor BVI has the green light to buy bitcoin futures amounting to “a low single-digit percentage exposure percentage” of the firm’s total assets.
Paul Tudor Jones has said his firm Tudor BVI Global Fund is buying bitcoin to hedge against the ‘great inflation,’ the world is facing, Bloomberg reports.
Tudor BVI Global Fund founder and CEO Paul Tudor Jones Says Bitcoin is best bet to hedge against inflation
Paul Tudor Jones, a global figure in the hedge fund industry, is betting on Bitcoin as the best option for hedging against inflation. The billionaire investor has compared bitcoin today to gold in the 1970s
Tudor Investment Corp., which manages the BVI Fund, has $38 billion worth of assets under management, with $22 billion of that put in the Fund.
In his note, the Tudor Investment CEO points out that monetary inflation will soon burst through the ceiling as governments rush to cushion economies with money-printing schemes. He reckons that up to $3.9 trillion has been infused into the global economy since COVID-19 hit global proportions in February.
Although a market veteran, Jones says the current circumstances have left him “speechless”, and that the inflation was “unprecedented” and something the developed world had never witnessed.
It is a grim outlook that calls for “the best profit-maximizing strategy”, Jones advised in his note.
And that approach means going for the “fastest horse” on offer, he added, stating: “If I am forced to forecast, my bet is it will be Bitcoin.”
The billionaire investor also told clients that bitcoin reminded him of what gold was like in the 1970s.
He may have a point. Gold in the early 1970s saw monstrous jumps in value, just like Bitcoin in recent years. Launched in 2009, it first skyrocketed from near-zero value to an all-time high of $20k in 2017.
Although its value crashed throughout 2018 and remains volatile, it has attracted attention since those glory days. Gold experienced somewhat a similar rise in the 1970s as it jumped from prices around $35 to top $180 per ounce between 1971 and 1974.
Jones predicts that gold, which is currently trading at $1,731.80 per ounce, could soon reach $2,400. Beyond that, he thinks price actions akin to the 1980s could see it hit $6,700.
In a matter of days, the Bitcoin community will welcome an event that is key to its supply metric and possible price boom. The ‘digital gold’ has hit $10,000, suggesting a gathering of momentum for a potential bull run. Various analysts and Bitcoin price watchers believe the crypto could surpass the 2017 peak and hit six figures within three to five years.