- The Bitcoin bull claims that “there is a place for cryptocurrencies,” and they are currently “winning the race against gold.”
- Jones prefers physical Bitcoins to the cryptocurrency futures pool but predicts it will also do well.
American billionaire Paul Tudor Jones said that cryptocurrencies are at times a better hedge against inflation than gold. The investor and head of Tudor Investment Corporation, expressed his concerns about the drastic increase in the prices of goods and services in the United States.
“It would be my favorite over gold at the moment,” Tudur said, referring to digital assets in a statement to CNBC. He said that it is now clear that “there’s a place for crypto. Clearly, it’s winning the race against gold at the moment.”
According to Jones, current inflation poses a serious threat to financial markets and to the US economy, which is just beginning to recover from the damage caused by the Covid-19 pandemic.
Jones, who is a well-known Bitcoin and cryptocurrency bull, says that the percentage of digital assets he owns in his portfolio is in the single digits. Earlier, Jones had said that Bitcoin was a great way for investors to protect the long-term value of their wealth. He also rated BTC as a store of wealth similar to gold.
On The Flipside
- The precious metal has historically been an investment haven used to hedge against inflation.
- However, in the last twelve months, instead of rising in price, gold has lost 8% of its value. On the other hand, Bitcoin has obtained an annual profit of 437%.
The world’s largest cryptocurrency, which hit the record price of US $66,000 on Wednesday, has been called digital gold. Although it was created with the purpose of serving as a payment system, its adoption as current money has been less rapid than that of other cryptocurrencies. Partly due to the high volatility of the currency.
Jones’ comment did not go unnoticed by investors Wednesday morning. Immediately its effect on the price of the cryptocurrency was seen when it reached its all-time high, breaking the April record.
However, for many investors this is not the best time to buy BTC. For several months, BTC stayed between $30,000 and $45,000, until the last two weeks when its price doubled from the May and July lows.
In recent days, the move of Bitcoin miners from China to the US, the regulation plans for cryptocurrencies, and the launch of the first BTC futures fund listed on the New York Stock Exchange have positively impacted the price of the asset.
By the way, in relation to the ProShares Bitcoin Strategy ETF, which had an excellent performance on the exchange on Tuesday and Wednesday, the millionaire pointed out that he prefers physical BTC instead of the ETF linked to futures.
Why You Should Care?
- Jones predicted that the ETF has a strong future ahead of it.
- He said investors should “feel very reassured” that this instrument has been approved by the US Securities and Exchange Commission.
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