Just last week, the cryptocurrency market got excited with the news that pioneer Wall Street hedge fund manager Paul Tudor was buying bitcoin (BTC) to hedge against inflation caused by quantitative easing.
The billionaire just confirmed the allocation of bitcoin in his portfolio during an interview with CNBC’s Squawk Box.
Macro Investor Paul Tudor Has Fortified His Portfolio With A 1%-2% Bitcoin Allocation
Speaking with CNBC, Paul Tudor opined that the Great Monetary Inflation and COVID-19 made him change his perception of cryptocurrencies. He has now put almost 2% of his wealth in bitcoin. In theory, this is around $100 million of his $5 billion net worth.
However, he admits that the flagship cryptocurrency still has some trust issues as it is only 11 years old, but it has the potential to mature:
“We’re watching the birthing of a store of value, and whether that succeeds or not only time will tell. What I do know is that every day that goes by and bitcoin survives, the trust in it will go up.”
With cash, Tudor astutely states that it is basically a “wasting asset”. That’s because it is at the whim of Central banks that subject it to depreciation every year.
“If you own cash in the world today, you know your central bank has an avowed goal of depreciating its value 2% per year.”
Bitcoin Is A Great Speculation: Tudor
Paul Tudor Jones grabbed the headlines last week after he affirmed that bitcoin at present reminds him of the role that gold played in the 1970s. As central banks print unlimited amounts of money in the wake of the coronavirus pandemic, he foresees high inflation rates like never before kicking in. And as this unfolds, he essentially expects bitcoin to act as digital gold.
He had also revealed that his $22 billion Tudor BVI fund is set to hold as much as “a low single-digit percentage of its assets” in bitcoin futures. Writing to his clients, he pointed out that the most compelling argument for owning bitcoin right now is “the coming digitization of currency everywhere accelerated by COVID-19.”
In his recent interview with CNBC, he posits that although bitcoin is not the panacea for all the monetary woes currently affecting the economy, it is a “great speculation”.
Just like last week, Tudor’s comments on bitcoin have sparked renewed optimism in the crypto markets. The top cryptocurrency is currently attempting recovery after the weekend massacre. It is trading at $8,915.83 at the time of publication, up 3.54% on the day.