Legendary Hedge Fund Manager Bets on Bitcoin

Colin Baseman

Bitcoin has been gaining more adepts for the past few years and now trend-spotting hedge fund manager Paul Tudor Jones is on board as well. Recently he has shared with news outlets that his fund plans on investing single-digits in digital gold. Clearly bitcoin seems like a horse worth betting on for him.

Unexpected interest in Bitcoin

As everything disruptively new, Bitcoin at first was seen as a butt of a joke, an attribute of some free-thinking anarchic millennial from Silicon Valley. It was talked about, some US states even suggested to transfer part of their pension funds to digital gold and this step is as serious as it gets, but not accepted with open arms by general public and lawmakers worldwide. It was generally considered an odd asset. The wild ride of highs and lows did not help its reputation. But with time even the financial world dinosaurs begin to notice its positive sides and perks. The crazy factor that was so obvious at the beginning has disappeared. More people consider buying it. And when you see the list of famous Bitcoin investors, it seems crazy to not consider the possibility of investing in it on your own.  

Paul Tudor Jones made quite a name for himself worldwide. Thousands of people are glued to the news about his next move in a rush to guess the next trend and get just a tiny bit richer along with the famous hedge fund manager. He has stirred the ship of his fund for 50 years now. It would be an understatement to say that he is experienced.

It was a surprise to many people that such a hedgie would get behind digital gold. In 2014, The New York Times noted that the actions of Paul Tudor Jones became more reserved, less daring, he preferred to not take such big risks as previously. His new reserved strategy and betting on Bitcoin are quite interesting when considered together.

The world is changing

It is clear that the world is changing. Jones has weathered many storms and even managed to make the right bets and profit off the Black Friday. But right now, there are more hedge funds and they act more reserved or, as some may say, restricted. They do not count on the fall of some country, don’t trade aggressively, the hedge funds prefer more modest, but steady gains. Jones has started out in the gold age of macro investing. And it seems that he is ready to catch another wave.

Jones bets on combining methods: taking into account price fluctuations and exactly why the price moves as it does. He says that if you understand the reason, you can predict where it will move next.

The world relies less and less on production, there are a lot of inflated industries. Experts agree that the current situation may result in a recession. During recession, people tend to turn into savers. According to statistics, in the USA during the last recession, the average savings rate has risen by 5 percent. Jones reviewed and ranked assets according to their attractiveness as a saving asset. He concluded that bitcoin is actually not that attractive based on portability, liquidity, purchasing power, and trustworthiness. It is not the most promising among gold, cash and etc.

However, when it comes to price, Bitcoin is a winner.

Taking into account everything mentioned before, Jones who is famous for trend spotting bets on Bitcoin. Even it means investing just a small amount of funds under his management. Paul Tudor Jones believes that bitcoin is meant to be treated just like gold or fiat currency on a balance sheet of a central bank.

The legendary hedge fund manager also said that he used to own Bitcoin in 2017, but he sold it off near the peak of its price. So maybe this time he will also play his cards right and catch the right momentum to invest in the most popular cryptocurrency.

For Bitcoin enthusiasts, it is certainly a good sign that big hedge funds are looking to invest in digital gold. The more widespread it will get among traditional, mainstream institutions, the steadier it will become. Paul Tudor Jones says that he knows one thing for sure and that it is going to be interesting times. We cannot help but agree.