American Billion Paul Tudor Jones Backs Bitcoin Investment Calling It A Great Portfolio Diversifier
American hedge fund veteran and billion Paul Tudor Jones backed investment in the world’s largest cryptocurrency calling it a great portfolio diversifier and wealth protector in the long run.
Tudor recent praise for Bitcoin came during his interview with CNBC’s Squawk Box on Monday, June 14. Tudor said: “I like bitcoin as a portfolio diversifier. For me, it’s just a way of kind of foundationally looking at how do I protect my wealth. Over time it’s a great diversifier. Again, I look at bitcoin as a story of wealth. I look at crypto as a story of wealth. Others will argue this is a different ecosystem. It’s transactional in nature.”
Explaining his reason behind investing in Bitcoin, the American billionaire said that math behind BTC makes it certain, reliable, and something of value that would flourish with time.
For now, Tudor has invested 5% of his portfolio in Bitcoin putting an equal weightage to other hedge assets like cash, gold, and commodities. Tudor said that the remaining 80% of his portfolio allocation depends on the regulatory measure the Fed will initiate further.
On the other hand, Tudor is also keen for going all-in on Bitcoin-like inflation trades if the U.S. Federal Reserve remains indifferent to rising inflation and consumer prices. Tudor added: “If they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade. If they say, ‘We’re on [the] path, things are good,’ then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.”
Last month in May 2021, Jones diverted 1-2% of his portfolio assets into Bitcoin (BTC). Besides, his firm Tudor Investment Corporation has joined hands with crypto institutional players like Coinbase and Bakkt securing custodial ties.
Although Jones remains positive on Bitcoin (BTC) he holds a critical view on the ongoing crypto mining operations that consume large amounts of electricity. Jones said that he’s concerned about the environmental impact related to Bitcoin mining.
“Clearly, I have concerns over environmental impact…if I was the king of the whole world, I would ban Bitcoin mining until the ecosystem finds better alternatives,” he added.
Jones entered the cryptocurrency market for the first time last year in 2020 and since then he has been a big advocate of it.