Billionaire hedge fund manager Paul Tudor Jones has turned more bullish on bitcoin, calling it the best hedge against inflation.
“I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and there is a long way to go,” Jones said on CNBC’s “Squawk Box” Thursday. He first revealed his bitcoin investment in May and said Thursday that he holds a “small single-digit investment” in the cryptocurrency.
The longtime trader believes the Federal Reserve’s unprecedented quantitative easing is setting the stage for a major return of inflation.
“The reason I recommended bitcoin is because it was one of the inflation trades menu, like gold, like TIPS breakeven, like copper, like it’s a long yield curve and I came to the conclusion that bitcoin would be was the best inflation trade, “Jones said.
Bitcoin has fully rebounded from coronavirus lows in March. The digital currency on Thursday reached its highest level since January 2018, trading at around $ 12,900. This week’s strength has come in large part from the news that PayPal will allow its users to buy, hold and sell cryptocurrencies.
The founder and chief investment officer of Tudor Investment Corporation also likened investing in bitcoin to putting money behind some of the biggest tech companies like Apple and Google.
“Bitcoin has this huge contingency of really, really smart, sophisticated people who believe in it,” Jones said. “It’s like investing with Steve Jobs and Apple or investing in Google soon.”
Jones rose to fame after predicting and profiting from the 1987 stock market crash. He is also president of the non-profit organization JUST Capital, which ranks US public companies based on social and environmental metrics.
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