Here’s something interesting. Legendary hedge fund manager Paul Tudor Jones has apparently become bullish on Bitcoin.
According to a Tudor Investments letter obtained by CoinDesk, Jones has revisited Bitcoin’s potential amidst what he calls the “Great Monetary Inflation.” Jones added BTC to his list of inflation hedges, but added that if he was forced to forecast what the best performer would be, his bet would be Bitcoin.
It falls into the category of a store of value and it has the added bonus of being semitransactional in nature. The average Bitcoin transaction takes around 60 minutes to complete which makes it “near money.” It must compete with other stores of value such as financial assets, gold and fiat currency, and less liquid ones such as art, precious stones and land. The question facing every investor is, “What will be the winner in ten years’ time?”
At the end of the day, the best profit-maximizing strategy is to own the fastest horse. Just own the best performer and not get wed to an intellectual side that might leave you weeping in the performance dust because you thought you were smarter than the market. If I am forced to forecast, my bet is it will be Bitcoin.
Jones pointed out Bitcoin’s fixed maximum supply, liquidity, and portability in his bull case for the cryptocurrency, adding that most compelling case for it would be the coronavirus-accelerated digitization of global currencies.
Bull markets, he said, are built on “an ever-expanding universe of buyers.” With Facebook’s Libra, China’s CBDC, and others making digital wallets more commonplace, buying Bitcoin would become easier and easier.
Jones went on to say that while he is not an advocate of owning Bitcoin in isolation, he sees potential in it and as such, has adapted his fund to trade bitcoin futures. The fund’s maximum initial exposure to Bitcoin is set to a low single-digit percentage to its net asset value, but Jones added that they will be reviewing this exposure guideline regularly.
Photo: BTC Keychain