Billionaire Paul Tudor Jones Buys Bitcoin to Hedge Against Inflation

Published at: May 7, 2020

Amid the ongoing coronavirus pandemic, inflation is collapsing all over the world. In order to hedge against the inflation risks, some billionaire investors are buying Bitcoin (BTC).

Paul Tudor Jones, the billionaire founder of hedge fund, Tudor Investment Corporation, reportedly revealed that Bitcoin is part of his portfolio.

“If I am forced to forecast, my bet is it will be Bitcoin.”

According to a May 7 report by Bloomberg, Jones is buying Bitcoin to protect his investments from the inflation coming from the money-printing by central banks. In a market outlook note titled “The Great Monetary Inflation,” the billionaire investor reportedly said that that Bitcoin reminds him of the role that gold played in the economic problems in the 1970s.

In the note, the 65-year-old investor highlighted Bitcoin as the best option in a profit-maximizing strategy. Jones 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.”

According to the report, Tudor BVI, a hedge fund operated by Tudor Investment Corporation, is holding as much as a “low single-digit percentage” of its assets in Bitcoin futures.

Ongoing crisis is Bitcoin’s biggest test

Jones is not the first to outline Bitcoin’s potential amid the coronavirus-fueled crisis and inflation. In March 2020, major cryptocurrency exchange BitMEX said that the coronavirus crash-fueled inflation would become Bitcoin’s biggest opportunity since its creation in 2009.

Subsequently, billionaire investor and major Bitcoin bull, Tim Draper, also outlined the crucial role of Bitcoin amid the ongoing global financial crisis. On March 16, Draper said that it will be Bitcoin, not banks and governments that save the day.

Meanwhile, Bitcoin’s price keeps surging in anticipation of a major milestone in its history. On may 12, the biggest cryptocurrency will face its third block reward halving, which means that the amount of Bitcoin mined every 10 minutes will drop from 12.5 to 6.25. Trading at $9,816 as of press time, Bitcoin has been gaining momentum recently, surging more than 11% over the past seven days. On Jan. 1, 2020 Bitcoin traded at around $7,200.

Tags
Bitcoin
United States
Bitcoin Futures
Fiat Money
Derivatives
Inflation
Gold
Related Posts
Bitcoin genesis block is the ‘New Testament’ of finance
“Fiat lux”, said God, having created heaven and earth, which was filled with darkness. And then, there was light. At least, that’s what the Holy Bible tells us. Translated to English, this Latin phrase means “let light be made.” For Christians, who much of the global population, these words mark the beginning of time and everything else. Eventually, there came a time when audacious, power-hungry, control-freak governments took the word “fiat” (literally meaning “it shall be” or “let it be done”) and used it to disguise one of the biggest shams ever — fiat currencies. Eons later, in 2009 A.D., …
Decentralization / Oct. 17, 2020
BitMEX CEO Expects Investors to Follow Paul Tudor Jones’ Move to Bitcoin
Paul Tudor Jones, a legendary hedge fund investor, triggered massive excitement in crypto markets yesterday by revealing that Bitcoin (BTC) is part of his portfolio. Traders and industry players like BitMEX’s CEO expect that the move will bring more big investors to the market. Arthur Hayes, CEO of the world’s second largest crypto exchange, BitMEX, says that Jones has just removed career risk from investing in cryptos like Bitcoin. “Expect a lot of beta fund managers to begin cooking some copypasta,” Hayes tweeted May 7. Jones paves the way for other hedge fund managers to get into Bitcoin Hayes is …
Bitcoin / May 9, 2020
CBOE keen to meet high demand for crypto from retail, institutions, says CEO
Chicago-based exchange holding company Cboe markets — an early pioneer of regulated Bitcoin futures trading in the United States — plans to build out more futures products within the crypto sector in future. In a new interview with BNN Bloomberg on March 25, CEO Ed Tilly said that the company's not always straightforward journey until now by no means dampened its commitment. Having been the first North American exchange to list Bitcoin (BTC) futures back in Dec. 2017, the Chicago Board Options Exchange, or CBOE, later ended the product in 2019, faced with stiff competition from popular BTC futures on …
Etf / March 25, 2021
Governments and banks are the only winners with fiat currency, says Max Keiser
Using the analogy of a Hi/Lo poker game — a variety of poker which crowns the highest and lowest hands as victors — broadcaster Max Keiser explained citizens will ultimately lose when it comes to holding government-issued currencies. "Unless you're a country, that can make money by debasing your currency, by getting kickbacks from Wall Street who packages all those currencies in the form of negative rate interest-rate bonds, then you only have one choice," Keiser said during an Oct. 15 episode of his show, the Keiser Report, adding: "You can only try to win the hand with the high …
Adoption / Oct. 15, 2020
What BTC price slump? Bitcoin outperforms stocks and gold for 3rd year in a row
Bitcoin (BTC) may be down over 30% from its record high of $69,000, but it has emerged as one of the best-performing financial assets in 2021. BTC has bested the U.S. benchmark index, the S&P 500, and the gold. Arcane Research noted in its new report that Bitcoin's year-to-date (YTD) performance came out to be nearly 73%. In comparison, the S&P 500 index surged 28%, and gold dropped by 7% in the same period, which marks the third year that Bitcoin has outperformed. At the core of Bitcoin's extremely bullish performance was higher inflation. The U.S. consumer price index (CPI) …
Etf / Dec. 29, 2021