“I like bitcoin even more now than I did then,” said billionaire hedge fund manager Paul Tudor Jones who made a bullish bet on Bitcoin this year in May with an investment of 1-2%, calling it the best inflation hedge.
According to PTJ, the ongoing rally, which has Bitcoin breaking into a new 2020 high to $13,300 after PayPal announced support, is just getting started.
“I think we are in the first inning of bitcoin, and it’s got a long way to go,” Jones said on CNBC’s “Squawk Box” on Thursday.
The reason behind the longtime trader’s love for the leading digital currency is the unprecedented quantitative easing from the Federal Reserve, which he believes is setting the stage for inflation. And it is going to make a comeback.
“The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade,” Jones said.
Much like many others, the founder of Tudor Investment Corporation compared putting money in Bitcoin to investing in the largest tech companies Apple and Google.
“Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it.”
“It’s like investing with Steve Jobs and Apple or investing in Google early.”
Jones, who is known for predicting the 1987 stock-market crash, also said that a Democratic win in the 2020 elections might also result in an initial pop in equity markets because “you’re going to get a massive fiscal stimulus, you’re going to get a big boost to the economy.”
But warned bonds and stocks could come under pressure because of Biden tax plan as “there’s an inverse relationship — it’s loose, but it’s clearly there — between stocks multiples and capital gains tax,” he added.
Credit: Source link