Billionaire Tudor Jones Bets on Bitcoin and Gold Amid Inflation Fears

Teuta Franjkovic
October 22, 2024
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Paul Tudor Jones sees BTC as inflation hedge

Highlights

  • Billionaire investor Paul Tudor Jones embraces Bitcoin and gold as an inflation hedge.
  • Previously cautious about Bitcoin, Jones now sees it as a valuable safe haven asset
  • Jones highlights geopolitical tensions and US debt levels as reasons for including Bitcoin in a diversified portfolio

Billionaire investor Paul Tudor Jones has just said that inflation is inevitable, adding that his strategy was to invest in assets like gold and Bitcoin—not fixed-income investments.

He thinks the only way to escape this debt crisis is by inflating the economy.

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Tudor Jones Embraces Bitcoin as Inflation Hedge

Billionaire investor Paul Tudor Jones disclosed that he is buying Bitcoin and gold against the rising tide of inflation, which he said will be vital to overcoming the debt crisis. He says, “Do not hold bonds.”

Jones’s plan reflects a growing unease over what fate will befall traditional finance and the possibility that cryptocurrencies like Bitcoin might serve as a store of value.

As part of his hedge against this scenario, Jones stays away from bonds and instead focuses on inflation-proof assets.

Speaking at the CNBC Squawk Box, he stated:

“All roads lead to inflation. I am long gold. I am long Bitcoin. I own zero fixed income. To get out of this [debt problem], the playbook is to inflate your way out.”

Earlier in 2023, Tudor Jones was less optimistic about Bitcoin. He cited regulatory and monetary pressures as potential hurdles for the cryptocurrency. Bank of America may partially agree with him since it recently recognized Bitcoin’s growing acceptance but favors gold over bonds as a safe haven.

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Geopolitical Risks and US Debt Fueling Bitcoin Bet

Paul Tudor Jones has been a proponent of Bitcoin since May 2020, recommending an allocation of 1%- 2% of a diversified portfolio to the cryptocurrency. He has occasionally tossed around the idea of increasing this kind of portfolio allocation up to 5% based on individual risk appetites.

Currently, Jones cites geopolitical risk, especially from events occurring in the Middle East, Ukraine, or Taiwan, as a critical factor to consider regarding the demand for assets like Bitcoin in a portfolio for hedging purposes against uncertainties in traditional markets. He is also worried about US debt levels, which, he has stated, have hampered his investment in stocks.

Arthur Hayes, the co-founder of BitMEX, certainly thinks so. Recently, he said the price of Bitcoin is going to soar precisely because of the current geopolitical tensions and their impacts on the economy.

On the other hand old gold bug and renowned economist Peter Schiff is totally against the Bitcoin as an investment. He even predicted that MicroStartegy’s MSTR stock could eventually crash because the company relays on BTC so much.

be it as it may, Tudor Jones characterized today’s global environment as one of the most perilous he had ever seen, indicating that the US fiscal situation was the weakest since World War II. Thus, Jones wanted to be long assets such as Bitcoin and gold, concerned that higher US interest rates could foster a vicious circle of higher debt and greater economic instability.

 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Teuta is a seasoned writer and editor with over 15 years of expertise in macroeconomics, technology, and the crypto and blockchain sectors. She began her career in 2005 as a lifestyle writer for *Cosmopolitan* before transitioning to business and economic reporting for renowned outlets like *Forbes* and *Bloomberg*. Inspired by thought leaders like Don and Alex Tapscott and Laura Shin, Teuta embraced blockchain's potential, viewing cryptocurrency as one of humanity's most transformative innovations. Since 2014, she has specialized in fintech, focusing on crypto, blockchain, NFTs, and Web3. Known for her strong collaboration and communication skills, Teuta also holds dual MAs in Political Science and Law.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.