Billionaire hedge fund manager Paul Tudor Jones says that bitcoin is currently “winning the race against gold.” He added that cryptocurrency is his preferred inflation hedge over gold.
Paul Tudor Jones Chooses Bitcoin Over Gold
Paul Tudor Jones, the founder of asset management firm Tudor Investment Corp., talked about bitcoin being his preferred hedge against inflation in an interview with CNBC Wednesday. He said:
Obviously, there is a place for crypto. Clearly it’s winning the race against gold right now… That would be my favorite at gold right now.
“I’ve got crypto in single digits in my portfolio,” he continued. “I do think we are moving into an increasingly digitized world.”
Jones said he was concerned about rising inflation, noting that it posed a major threat to U.S. financial markets and the recovery of the economy affected by Covid.
The price of bitcoin surpassed all-time highs Wednesday after the first bitcoin futures exchange-traded fund (ETF) in the U.S. started trading on the NYSE. Gold has lost 8% in the past 12 months while bitcoin has gained 437%.
The billionaire investor was asked to comment on investing in a bitcoin ETF as a way to get exposure to the cryptocurrency. Admitting that he is not “a real expert on ETFs,” Jones said:
I think a better way to get in would be to own the physical bitcoin, take the time to learn how to own it… I think the ETF would be nice. I think the fact that it is SEC-approved should give you great comfort.
He was also asked if approval of an ETF means regulators say crypto is here to stay. Jones replied:
I think crypto is here to stay.
He went on to explain why the United States is “the most important economic power in the world is because we unleash our individual entrepreneurship and creativity.”
In contrast, he said, “China is doing the exact opposite. That place is on an economically slow boat to the south pole.”
The billionaire fund manager has previously said bitcoin is a store of wealth, like gold. He started recommending BTC for wallets early last year. In October 2020, he said that he saw massive upside in bitcoin and likened investing in the cryptocurrency to investing in early Apple or Google.
