As he has recently betrayed, is the senior Fund Manager Paul Tudor Jones now a big Fan of Bitcoin, especially as a hedge against Inflation.
You’ve noticed it already: – Fund Manager Paul Tudor Jones is now officially a Bitcoin Fan (BTC). Only a few media have reported, why the American hedge Fund Manager, is suddenly a Fan of the leading crypto-currency. He explained his reasoning in a letter to Investors in may 2020.
“Bitcoin is undervalued in comparison to Gold”
Paul Tudor Jones was recently in the news because he has mentioned Bitcoin (BTC) as a hedge against Inflation. His argument, as in the BVI-letter to the investors from the may 2020 explained:
“Bitcoin… achieved 66% of the value of Gold as a store of value, but has a market limit, which is 1/60 of the gold value. Something seems to be wrong here, and I suspect that it is the price of Bitcoin.“
Jones believes that the government debt to accumulate quickly. “Printing money is a hard to overcome habit”, it is in the letter. Investors should, therefore, should be given the fears of inflation to the Alternatives. Gold is an obvious Alternative, but Jones defends Bitcoin in detail as an investment.
Ultimately, Bitcoin will fulfill according to Jones, the four criteria that make it a suitable hedge against Inflation: It is (1) trustworthy, (2) liquid, (3) portable and features (4) purchasing power. In comparison to Gold Bitcoin after Jones had a rating of‘ evaluation as an asset class fundamentally under.
The full letter to Investors here.
Institutional actors are taking note of Bitcoin
Paul Tudor Jones is another big investor, has taken the leading crypto-currency as a hedge against Inflation in the eye. This Thesis is being led by Bitcoin enthusiasts, often and for many the core of the value proposition.
Jones is a good time to Bitcoin. As a reaction to the COVID-19-pandemic, the majority of large Central banks to buy assets to record levels.
In March alone, the Central banks of the countries of the “group of Seven” about 1.4 trillion bought in values of dollars in financial assets. Also, the national debt has skyrocketed.
The state debt of the USA has recently exceeded 25 trillion dollars. Apparently that was not enough, however. For the months of April, may and June, the U.S. Treasury Department plans an additional 3 trillion dollars.
Such Numbers are unfathomable, and they underline how risky the current fiscal and monetary Situation. Bitcoin offers us an Alternative – and large-scale investors such as Paul Tudor Jones of it are finally taking note.