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Key points
- Paul Tudor Jones has expressed his positive views on Bitcoin, Ethereum and other cryptocurrencies.
- The American finance mogul has compared Bitcoin and Ethereum to precious and industrial metals.
- He also reflected on the idea that digital currencies will replace cash in the future.
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Talking with Yahoo! Finance, Paul Tudor Jones, one of the most famous investors in the world, shared his long-term view on Bitcoin, Ethereum and other cryptocurrencies.
Jones said he thought Bitcoin had the “wrong market cap” with respect to stocks and fiat currencies, suggesting he believes in the growth potential of the number one cryptocurrency.
He then mentioned Ethereum and Tether as two other major cryptocurrencies.
Bitcoin, Ethereum and the “complex of metals”
He added that he thinks the crypto space will be “very similar to the metal complex”. Namely, Bitcoin would represent a precious metal like gold, due to its digital scarcity and legacy as the first cryptocurrency.
Other cryptocurrencies, meanwhile, may be more like industrial metals like “copper, platinum and palladium”.
The comparison isn’t a completely new perspective: Bitcoin has often been referred to as a form of digital gold, not least this year.
Similarly, Jones’s mention of usable industrial metals is probably an appropriate description for an asset like ETH. Users of the Ethereum blockchain have to spend ETH to interact with the network’s programmable smart contracts, but the currency also has use cases outside of the network power.
Where Bitcoin represents a form of store of value like gold, ETH may turn out to be more like a multipurpose metal like platinum.
Jones went on to say that the crypto space is reminiscent of the Internet equity landscape of the late 1990s. The growth of the World Wide Web famously fueled a wave of speculative craze for Internet-related stocks at the turn of the millennium, resulting in a cycle of boom and recession known as the “dot-com bubble.”
Jones said he thinks a similar scenario could unfold in the cryptocurrency space, with only a few projects likely to survive in the long run.
He also said that digital currencies are likely to see widespread adoption over the next two decades and that “the cash may be gone.” He concluded by saying he “will assume the forward path is north”, referring to the price of cryptocurrencies.
Jones surprised the crypto community when he turned around bullish on Bitcoin earlier this year. At the time, he said that BTC represents 1-2% of his investment portfolio.
Jones is considered a legendary figure in the world of finance. His net worth is estimated at $ 5.8 billion.
Disclaimer: The author of this feature owns ETH, among a number of other cryptocurrencies.
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