Legendary trader Paul Tudor Jones (PTJ) has stated that Bitcoin reminds him of Gold in the 1970s.
Hedge against Inflation
The current Global Monetary Inflation (GMI) has reached unexpected extremes; according to him the equivalent of 6.6% of the economic output has been printed by central banks since February.
“It has happened globally with such speed that even a market veteran like myself was left speechless,” PTJ stated, “We are witnessing the Great Monetary Inflation — an unprecedented expansion of every form of money unlike anything the developed world has ever seen”.
Tudor Investment BVI
To protect capital, a hedge against inflation must be chosen and due its increasing popularity and ready accessibility, he believes that Bitcoin may be the fastest horse in this race.
As a result, one of his funds, Tudor Investment BVI will allegedly have as much as a single-digit worth of its NAV (net asset value) invested in Bitcoin futures. This can lead to as much as $400 million being injected into the market.
Jones already had a taste of Bitcoin in 2017 where he exited near the $20,000 peak. However, he is now looking at it from a different lens: a store of value.
The trader stated: “I am not a hard-money nor a crypto nut. The most compelling argument for owning Bitcoin is the coming digitization of currency everywhere, accelerated by COVID-19”.