On Wednesday, billionaire investor Paul Tudor spoke about his current views on cryptocurrency. He claimed that, as of right now, cryptocurrency is a better hedge against inflation than gold.
Jones said, “It would be my preferred one over gold at the moment” adding, “clearly there’s a place for crypto. Clearly it’s winning the race against gold at the moment.”
Jones also voiced his worries about inflation, saying that it is posing a major threat to the US financial markets and the recovering Covid-hit economy. Speaking about the percentage of cryptocurrencies in his holdings, Jones said “I’ve got crypto single digits in my portfolio.”
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Jones’ support for crypto has been apparent for some time. In June, Jones claimed that Bitcoin is a great way to protect wealth over the long run, comparing the coin to gold. Gold is an investment that hedges against inflation as it would rise with the rapid growth in consumer prices.
Bitcoin is often referred to as ‘digital gold’. The coin was designed as a payment system yet adoption as legal tender has been slow due to the coin’s volatile nature.
After Jones’ remarks, the price of Bitcoin moved higher and was less than 1% away from its April all-time high of $64,899. The coin has been teasing the ATH all week, showing positive signs in the eyes of many analysts.
Bitcoin experienced some struggles over the summer, trading below $30,000 before surging higher in advance of the launch of the first US Bitcoin-linked exchange-traded fund. In Tuesday’s debut session, the ProShares Bitcoin Strategy ETF jumped 4.8%, opening higher on Wednesday. The ETF tracks Bitcoin futures, rather than the cash price.
In his interview, Jones said that he would rather own Bitcoin itself than the futures-tied ETF. However, the billionaire said that the ETF will be a success and that investors should “take great comfort that its been approved by the US Securities and Exchange Commission.”