Macro investor Paul Tudor Jones has begun investing in Bitcoin as a way to save his funds. This is to shield him from the harsh economic effect of the looming inflation he predicts from central bank money-printing. Jones says that with his Bitcoin investment, it reminds him of how gold performed in the 1970s.
With Jones Bitcoin investment, he now marks as one of the prominent hedge fund managers to invest in Bitcoin. He was driven to consider Bitcoin investment because of fiscal spending and bond-buying by central banks to fight the novel coronavirus pandemic effect.
According to Jones, his calculations shows that around $3.9 trillion i.e., 6.6 percent of global economic output has been minted this year. Jones wrote that how fast it occurred has left experts like himself mute. He wrote that what is being experienced is great monetary inflation the developed world has ever seen.
Paul Tudor Jones, however, needed a way to hedge the coming inflation as he thought about gold, stock, treasuries, etc. before finally settling for Bitcoin. Also, now that the investor is staking on Bitcoin, it is a good time for the digital asset. Bitcoin recently has continued to surge, doubling from value since mid-March.
Paul Tudor Jones’ Bitcoin investments
The digital asset never failed the investor when he staked on for the first time in 2017. Paul Tudor Jones managed to double his Bitcoin investment in 2017 before cashing out when the crypto almost reached $20,000. He now sees the crypto as a way of storing value based on four criteria: purchasing power, trustworthiness, liquidity, and portability.
The investor said that the primary reason for owning Bitcoin is because of the imminent digitization of currency the pandemic is fuelling. He says that investors should forget about the old ways of doing things and embrace monetarist theories of Milton Friedman.
Jones believes economic recovery after the pandemic would not be the same as with the previous financial crisis. This is because banks are still able to give out loans, and the Federal Reserve is backing them. Jones began his financial career in 1970 trading cotton futures when he finished from the University of Virginia. It was a time of stagnation, and the stock market was plunging.
He wrote that Bitcoin makes him remember gold when he began investing in 1976. He still believes in gold and says it could rise to $2,400 and maybe $6,700.