Billionaire hedge fund manager Paul Tudor Jones expects crypto to have a bright future as the Fed hikes interest rates to fight inflation. The famed investor emphasized, “It’s hard not to want to be long crypto.”
Famed Hedge Fund Manager Paul Tudor Jones on Bitcoin, Crypto
Billionaire investor and renowned hedge fund manager Paul Tudor Jones talked about bitcoin in an interview with CNBC Tuesday. Jones is the founder of asset management firm Tudor Investment Corp.
“I see this generational divide and it’s a digital divide,” the billionaire said. “If you look at the smartest and brightest minds that are coming out of colleges today, so many of them are going into crypto, so many of them are going into the internet 3.0,” he noted, adding:
It’s hard not to want to be long crypto because of the intellectual capital, just the sheer amount of intellectual capital that’s going into that space.
“Clearly, if you think about the ultimate dream of crypto, it’s a borderless internet where all of a sudden, you have blockchain as the verification code to allow anyone on the internet to instantly connect because the blockchain verifies who they are and then that opens up just huge possibilities,” Jones detailed.
The Tudor Investment founder opined: “Clearly, central banks and central governments are not going to necessarily be huge fans of that, particularly when it comes to using crypto as a medium of exchange.” He warned:
That’s the number one thing that’s holding it back … the fact that you’re not going to get buy-ins from governments because they lose the ability to control the creation and the supply of money.
Nonetheless, Jones noted that “in a world where we’re starting to de-globalize,” the ability to have the borderless internet and a store of value outside of fiat currencies “becomes very attractive.”
He then shared: “I’ve got my modest allocation to crypto. I have a trading position on top of that, that goes from fully invested to zero, and I’d say right now I’m modestly invested.” Regarding his future outlook for crypto, he said:
I would think that it’s going to have a bright future as we roll through these rate hikes at some point in time, a lot of it depends on what our central bank does. A lot of it depends on how serious we are about fighting inflation.
Jones was among the first traditional hedge fund managers to recommend bitcoin in portfolios. In October last year, he said he preferred crypto over gold as a hedge against inflation. He previously likened BTC to investing in early tech stocks like Apple and Google.
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