Paul Tudor Jones buys Bitcoin as inflation protection

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While the crisis linked to covid-19 pushes central banks to print large amounts of money, famed American investor Paul Tudor Jones see Bitcoin as a blanket againstinflation.

In a note on the market outlook called " The Great Monetary Inflation ", The CEO-founder of Tudor Investment stated that Bitcoin reminded him of the role that could play gold in periods of high inflation like in the 1970s, reports Bloomberg.

The best profit maximization strategy is to own the fastest horse. If I have to make a forecast, I bet it will be Bitcoin," he said.

The legendary investor added that his fund Tudor BVI could invest "a small single digit percentage" in the first cryptocurrency in the market via futures contracts.

According to him, already more than $ 3,900 billion, or about 6% of world economic production, have been printed by central banks since February.

It happened with such speed that even a market veteran like me was speechless. We are witnessing the Great Monetary Inflation – an unprecedented expansion of all forms of money unlike anything the developed world has ever seen, ”said the 65-year-old trader.

Tudor Jones is interested in Bitcoin for several years and had managed to double his stake with his personal money during the token price explosion in late 2017.

Stating that he is not a crypto-fan, the hedge fund manager explained that the digitization currency, accelerated by the coronavirus, was the most convincing argument to turn to Bitcoin.

According to him, investors must now throw away the financial manual of the past decade and return to monetarist theories of Milton Friedman and old school indicators like the money supply M2.

How reasonable is it to expect that in the recovery phase the Fed will be able to provide an increase in interest rates of sufficient magnitude to suck up the money it has so easily printed during the recession, ”he wrote.