Paul Tudor Jones, an American billionaire investor and hedge fund boss, emphasized that despite the current turbulent market conditions in the cryptocurrency field, the value of cryptocurrencies such as Bitcoin will be much higher in the future.
Jones said in an exclusive interview with CNBC’s Squawk Box on the 10th that if inflation can’t be brought under control, “we’re going to have to have fiscal austerity,” with major consequences.
Jones said he still holds bitcoin and that he “always holds a small allocation” in bitcoin. He said that in an era of flooded funds, cryptocurrencies like bitcoin and ethereum will be valuable at some point.
In fact, Jones has continued to mention that he is optimistic about Bitcoin in the past two years. For example, in October last year, he said that the utility of cryptocurrency to avoid inflation risks is better than that of gold; in June last year, he suggested that 5% of assets should be allocated to Bitcoin. Precisely predicting that, as the Fed ignores the rising consumer price index (CPI) at the meeting, the wrong forecast of inflation may damage the credibility of the Fed.
“When there’s too much money, that’s why we have inflation and too much physical spending, like cryptocurrencies, especially bitcoin and ethereum, end up being finite,” Jones said in the latest interview. , at a certain point in time, will have value.”
The billionaire said he doesn’t know when that day will happen, but that cryptocurrencies will have value due to scarcity, and they will be much more valuable than they currently are.
Will Clemente, co-founder of Reflexivity Research, said he shares Jones’ sentiments, saying: “The big guys understand that bitcoin is a safe haven from devaluation. He’s leaking, leaking secrets.”
Will Clemente said: “Certainly, the current monetary environment is moving in the opposite direction. It just shows that Bitcoin is currently seen as a measure of liquidity conditions. This is a big thing for the legalization of this asset.”
However, cryptocurrency skeptic Peter Schiff criticized Jones’ views, stating that Jones had taken profits and was now just gambling with the initial bet. He said: “Paul Tudor Jones just admitted that he still holds a small amount of bitcoin. It’s not a very convincing endorsement for such a large mainstream investor to have a position. I guess Jones has taken profits from the initial buying action, and now It’s gambling with institutional money.”
Jones has been bullish on Bitcoin since two and a half years ago, but the market’s perception of it is that he is not wholeheartedly pro-Bitcoin. In mid-2020, Jones said he had allocated between 1% and 2% of his multi-billion dollar portfolio to Bitcoin. He later said that if the Fed continues to move toward the same monetary policy, he may consider allocating as much as 5% of his assets to bitcoin. His comments at the time helped push the price of cryptocurrencies higher at a time when the industry was in a bull market.
Bitcoin fell nearly 1% to $19,032 during the session on the 11th, but it has been hovering at this level in recent days, and Jones’s latest opinion has not had much impact on Bitcoin’s price action.