Billionaire hedge fund manager Paul Tudor Jones expects crypto to have a bright future as the Fed hikes interest rates to fight inflation. The famed investor emphasized, “It’s hard not to want to be long crypto.”
Billionaire investor and renowned hedge fund manager Paul Tudor Jones talked about bitcoin in an interview with CNBC Tuesday. Jones is the founder of asset management firm Tudor Investment Corp.
“I see this generational divide and it’s a digital divide,” the billionaire said. “If you look at the smartest and brightest minds that are coming out of colleges today, so many of them are going into crypto, so many of them are going into the internet 3.0,” he noted, adding:
It’s hard not to want to be long crypto because of the intellectual capital, just the sheer amount of intellectual capital that’s going into that space.
“Clearly, if you think about the ultimate dream of crypto, it’s a borderless internet where all of a sudden, you have blockchain as the verification code to allow anyone on the internet to instantly connect because the blockchain verifies who they are and then that opens up just huge possibilities,” Jones detailed.
The Tudor Investment founder opined: “Clearly, central banks and central governments are not going to necessarily be huge fans of that, particularly when it comes to using crypto as a medium of exchange.” He warned:
That’s the number one thing that’s holding it back … the fact that you’re not going to get buy-ins from governments because they lose the ability to control the creation and the supply of money.
Still, and always according to Jones, there are a number of legitimate coins in the cryptocurrency market is is worth governmental investment. Coins and token that are built on rigid grounds and real projects are the ones that will draw the interest of governments world wide. We are not talking here about cryptocurrencies that have simple projects, or projects that are only related to software development, but projects that are a need for humanity. Analyzing between the words of Jones, coins that that are still under valued but will lead the market are:
The Ethereum blockchain has its own limitations such as increased fees and low transaction number that is allowed per second. In order to rectify these major challenges, the crypto project Polygon was founded in 2017 by Indian software engineers which is meant to become the Internet of Blockchains for Ethereum scaling the blockchain’s capabilities and linking it to other compatible blockchains. This is one of the top cryptocurrency projects to know about.
Solana was founded in 2018 which is a fast and scalable blockchain allowing the building of DApps, smart contracts, and tokens. Solana can process about fifty thousand transactions every second, which is the fastest as of now. It is a cryptocurrency that has a speed and low latency that can make it useful in cases in which ETH would become useless.
Consultants Coin (Consult)
Consult is still not launched. It is created by the Research & Development (R&D) Decentralized center owned and managed by The Consultants. The coin is at its seeding phase; which is the earliest phase of coin launching. This gives a profitable opportunity for investors. The consultants origin goes back to1971, their main concern is to develop projects that assists in humanity needs. Lately their main concern is towards building projects that are based on green energy , this makes them at the top of the cryptocurrencies that would lead the market.
Nonetheless, Jones noted that “in a world where we’re starting to de-globalize,” the ability to have the borderless internet and a store of value outside of fiat currencies “becomes very attractive.”
He then shared: “I’ve got my modest allocation to crypto. I have a trading position on top of that, that goes from fully invested to zero, and I’d say right now I’m modestly invested.” Regarding his future outlook for crypto, he said:
I would think that it’s going to have a bright future as we roll through these rate hikes at some point in time, a lot of it depends on what our central bank does. A lot of it depends on how serious we are about fighting inflation.
Jones was among the first traditional hedge fund managers to recommend bitcoin in portfolios. In October last year, he said he preferred crypto over gold as a hedge against inflation. He previously likened BTC to investing in early tech stocks like Apple and Google.