As inflation collapsing throughout the world amid the ongoing coronavirus pandemic, some billionaire investors are buying Bitcoin (BTC) to hedge against the inflation risks. Paul Tudor Jones, the billionaire and founder of Tudor Investment Corporation hedge fund, has reportedly revealed Bitcoin is part of its portfolio.
“If I am forced to forecast, my bet is it will be Bitcoin.”
Jones buys Bitcoin to protect his investments against inflation that comes from central banks’ money-printing. The billionaire investor reportedly said in a market outlook note titled “The Great Monetary Inflation,” that Bitcoin reminds him of the role that gold played in the economic problems of the 1970s.
The 65-year-old investor has highlighted, in the note, Bitcoin as the best option in a strategy to maximize profit. Jones says:
“The best profit-maximizing strategy is to own the fastest horse […] If I am forced to forecast, my bet is it will be Bitcoin.”
Tudor BVI, a hedge fund operated by Tudor Investment Corporation, holds as much as a ‘low one-digit percentage’ of its assets in Bitcoin futures, according to the report.
Ongoing Crisis is Bitcoin’s Biggest Test
Jones isn’t the first to outline the potential of Bitcoin amid the crisis and inflation fuelled by coronavirus. In March 2020, major cryptocurrency exchange BitMEX said the crash-fuelled coronavirus inflation would become the biggest opportunity for Bitcoin since its creation in 2009.
Subsequently, Tim Draper, a billionaire investor and major Bitcoin bull, also outlined Bitcoin’s crucial role amid the ongoing global financial crisis. On March 16, Draper said Bitcoin will be the saver of the day, not banks and governments.
Meanwhile, the price of Bitcoin continues to surge in anticipation of a significant milestone in its history. On May 12, the largest cryptocurrency faces a halving of its third block reward, meaning the amount of Bitcoin mined every 10 minutes will drop from 12.5 to 6.25.