Summary
Paul Tudor Jones hasn’t been a Bitcoin critic but thought it was very much speculative.
Now he believes it deserves a closer look and a larger portfolio allocation.
He thinks a recession as well as a changing political climate call for more stable assets like Bitcoin and Gold.
Billionaire hedge fund investor Paul Tudor Jones has held the view that Bitcoin (BTC)is a speculative asset for some time. However, it appears he has recently changed his mind, indicating that he has allocated more to the largest cryptocurrency. Speaking to Andrew Sorkin on CNBC’s Squawk Box, he said, “I would lump gold and Bitcoin together.”
Paul T. Jones is worth $8,100,000,000 and pioneered the modern hedge fund industry.
He says, “I think #bitcointakes on a larger percentage of your portfolio. I like #bitcoin” pic.twitter.com/cn8Xtgg3kp
— Documenting ₿itcoin 📄 (@DocumentingBTC) October 10, 2023
History of Calling Bitcoin a ‘Great Speculation’
Unlike other billionaires, Tudor Jones has not refrained from investing in Bitcoin, but he considered it a highly speculative and risky asset. He revealed that in 2020, his portfolio consisted of at least 1% Bitcoin, “Maybe it’s almost 2,” hesaid.
Nevertheless, it appears he has always believed in the future of the asset, stating, “Every day that goes by that bitcoin survives, the trust in it will go up.”
Challenging Times Ahead
Now, due to a looming recession and geopolitical challanges, Tudor Jones believes Bitcoin makes more sense. He said, “More likely than not we’re going to go into recession.”
He also believes the United States has not seen economic turmoil on the current scale since the Second World War ended. Tudor Jones stated, “You’ve got the geopolitical uncertainty… the United States is probably in its weakest fiscal position since certainly World War II with debt-to-GDP at 122%.”
Further, he explained, as interest rates rise in the United States, it triggers a cycle where higher borrowing costs lead to increased debt issuance, which causes bond sell-offs, driving rates even higher. This vicious circle can put the U.S. in a financially unsustainable position.
With all this Tudor Jones believes it is difficult to invest in risk-on assets like stocks at present
JUST IN – Legendary investor Paul Tudor Jones: It's "hard to like stocks" right now.
"I like gold and #Bitcoin" pic.twitter.com/QT4iHLDfM5
— Bitcoin Magazine (@BitcoinMagazine) October 10, 2023
A Change of Mind, and Portfolio Allocation
Tudor Jones quickly proposed a solution for investors, mentioning his plans to acquire more gold and Bitcoin. He told Sorkin, “I would love gold and bitcoin together. I think they probably take on a larger percentage of your portfolio than they would historically.”
It is unknown what Tudor Jones’ allocation in Bitcoin is right now, but he revealed there was “probably a US $40 billion ($62 billion) worth of buying.”
Source: CoinMarketCap
At the time of writing Bitcoin is up 44.37% from this time last year, according to CoinMarketCap. One BTC trades currently for US $27,428.26 ($42,629.05).
