• Paul Tudor Jones, a bitcoin bull and billionaire hedge fund manager, believes that the days of using BTC as an inflation hedge may be over due to the Fed’s rate hikes.
• Inflation has been affecting the U.S. for over a year, leading to rising food and gas prices as well as preventing people from affording big items such as homes and cars.
• Despite this, Jones still encourages keeping BTC in one’s portfolio, maintaining his bullish outlook on the asset.
Paul Tudor Jones: BTC’s Days as an Inflation Hedge Are Over
Background on Inflation in the US
The United States has been dealing with inflation for more than a year now, with it peaking at over nine percent in June last year. This has caused weak leaders like Joe Biden to instill poor economic policies and sign trillion-dollar spending bills which have led to rising food and gas prices as well as preventing many from affording big items such as homes and cars. The Federal Reserve has raised rates in order to combat these issues but have not seen much success in doing so besides destroy crypto prices.
BTC As An Inflation Hedge
Bitcoin fans have long believed that buying bitcoin would serve as a hedge against inflation – protecting their wealth should economic strife occur by working against dollar-crushing measures being taken out by governments worldwide. However, according to Paul Tudor Jones – a bitcoin bull and billionaire hedge fund manager – these days may now be coming to an end due to the Fed’s rate hikes coming soon. He commented that „if inflation is truly done a bit… then you have to wonder… We were buying gold and bitcoin for the inflation hedges. That game may be over.“
Jones‘ Outlook On BTC
Despite this change of perspective on why people buy bitcoin, Jones still remains bullish on the asset itself and encourages people keep it part of their portfolios regardless of its use against inflation or otherwise. He stated that „you can’t go wrong owning it“ when considering investing in cryptocurrency compared to other assets like gold or stocks/bonds during times of economic uncertainty.
It appears that while Paul Tudor Jones believes that purchasing bitcoin solely for its use against inflation is no longer necessary given recent developments in the economy, he still recommends holding onto it nonetheless – likely because he’s confident it will continue serving its purpose towards helping people build wealth no matter what might come next economically speaking.