Hedge fund manager billionaire Paul Tudor Jones expects cryptocurrencies to have a bright future as the Fed raises interest rates to fight inflation. The well-known investor emphasized: “It’s hard not to want to be long crypto.”
Famous hedge fund manager Paul Tudor Jones on bitcoin, cryptocurrencies
Billionaire investor and prominent hedge fund manager Paul Tudor Jones talked about bitcoin in an interview with CNBC on Tuesday. Jones is the founder of the asset management company 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 coming out of college today, a lot of them are going into cryptocurrencies, a lot of them are going into Internet 3.0,” he noted, adding: “
It’s hard not to want to be long cryptocurrency because of the intellectual capital, just the sheer amount of intellectual capital that’s going into this space.
“Obviously, if you think about the ultimate dream of cryptocurrencies, it’s a borderless Internet where suddenly there’s a blockchain as a verification code that allows anyone on the Internet to connect instantly because the blockchain validates who they are, and then that opens up just huge opportunities,” Jones details.
The founder of Tudor Investment believes, “Obviously, central banks and central governments aren’t necessarily going to be big fans of this, especially when it comes to using cryptocurrencies as a medium of exchange.” He warned:
This is the first thing that holds back the development of cryptocurrencies … the fact that you don’t get support from governments because they lose the ability to control the creation and supply of money.”
Nevertheless, Jones noted that “in a world where we are beginning to deglobalize,” the possibility of having a borderless internet and store of value outside of fiat currencies “becomes very attractive.”
He then shared, “I have a modest stake in cryptocurrencies. I also have a trading position that ranges from fully invested to zero, and I would say I’m investing modestly right now.” As for his future perspective on cryptocurrencies, he said:
I would think that cryptocurrencies will have a bright future as long as we go through these rate hikes at some point in time, a lot depends on what our central bank does. A lot depends on how seriously we fight inflation.
Jones was one of the first traditional hedge fund managers to recommend bitcoin in portfolios. Last October he said he preferred cryptocurrency over gold as a hedge against inflation. He previously compared BTC to investing in early tech stocks such as Apple and Google.
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