For Paul Tudor Jones, crypto is a better inflation hedge than gold.
The US billionaire said this during an interview with CNBC.
Summary
Even for Paul Tudor Jones, crypto is a weapon against inflation
Paul Tudor Jones has always been a supporter of Bitcoin. Today he says he would rather invest in cryptocurrencies than gold to protect himself against inflation. He said in the interview:
“It [cryptocurrencies] would be my preferred one over gold at the moment. Clearly, there’s a place for crypto. Clearly, it’s winning the race against gold at the moment”.
In the interview, he also said that the percentage of cryptocurrencies in his investment portfolio is quite small, calling it single-digit: he basically has less than 10% crypto, while the rest of his holdings are in other assets.
No ETFs for Paul Tudor Jones
Furthermore, he doesn’t seem willing to get on the Bitcoin ETF train. He would rather hold BTC than resort to exchange-traded funds. Although he admits that ETFs will be good for Bitcoin and that investors will get comfortable with them.
Unlike BTC, SEC-approved ETFs make the investor buy shares on the exchange based on a Bitcoin futures fund. This avoids having direct exposure to Bitcoin, as well as perhaps going through exchanges and also having to use external custody or wallet services.
In short, ETFs are a much more familiar tool for institutional investors who want exposure to Bitcoin.
Gold vs Bitcoin
Just as Bitcoin hit a new all-time high, gold is also making a comeback. It is currently trading at $1,787 an ounce. Essentially, physical gold seems to be defending itself against the onslaught of digital gold.
According to analysts, there are chances that it will rise further to $1,800 an ounce. It could then head for a second target in the $1,830 area.
The growth of gold and Bitcoin is not surprising when compared to the current economic scenario. In the US, inflation is starting to get scary. In addition, the Fed is about to start tapering, i.e. reducing economic stimulus initiated to deal with the Covid emergency. With trillions of dollars in print, the risk is that the world’s strongest currency will be devalued. This justifies the flight of investors towards the most valuable reserves, gold, and its digital alternative, Bitcoin.
The launch of ETFs, which have also caught the attention of institutional investors, has shifted the focus towards Bitcoin.
