Paul Tudor Jones buys bitcoins
Paul Tudor Jones revealed that buy bitcoins as a hedge against inflation.
The American hedge fund manager, founder of Tudor Investment Corporation and seventh most profitable hedge fund manager in the world, he stated in a note entitled “Large monetary inflation”:
“The best profit maximization strategy is to own the fastest horse. If I have to predict, I bet it will be Bitcoin. “
In fact, Tudor Jones says he’s worried about the inflation that could be caused by the powerful new money printing campaign by the Fed’s central bank, claiming that bitcoin today reminds him of the role of gold in the 1970s.
However, he said his Tudor BVI fund should only hold a small percentage of its assets in Bitcoin futures, less than 10%.
He is one of the first major hedge fund managers to opt for a similar solution, so far, it has been largely overlooked by traditional managers.
According to his calculations, the Fed created $ 3.9 trillion, or the equivalent of 6.6% of global economic production, out of thin air since February, and this huge release of dollars could end up generating inflation. by reducing its value.
In comparison, the amount of BTC created during the same period is practically insignificant.
“It happened on a global scale at such a speed that even a market veteran like me was blown away. We are witnessing the Great Monetary Inflation – an unprecedented expansion of all forms of money, unlike anything the developed world has ever seen. ”
To guard against these risks, Tudor Jones revealed that he had considered various alternatives, such as gold, treasury bills, certain types of stocks, currencies and commodities, however, ultimately recognizing a “growing” role of bitcoin in this direction.
To tell the truth, Paul Tudor Jones has been operating in the crypto market since 2017, but only personally and only to speculate. Now, instead, he wants to use bitcoin as store of value for its fund, thanks to its characteristics of maintenance of purchasing power, reliability, liquidity and portability.
Jones argues that investors, given the current anomalous and peculiar situation, should discard the financial manual for the past decade and revert to monetarist theories from Milton Friedman and old-school indicators such as M2 money supply.
Jones also claimed to remain a gold fan, imagining that if it returned to the extreme of 1980, its price could rise to $ 2,400 or even rise to 6,700.
Also, Jones thinks it is possible that Fed monetary policy become a political instrument in the hands of the country’s political administration, which could further encourage the development of a real inflationary policy on the US dollar.
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