Bitcoin Is The ‘Best’ Inflation Hedge, Says Veteran Macro Trader Paul Tudor Jones

• Paul Tudor Jones called Bitcoin a rare “knockout” macro trade, pointing to its 2020 surge as a prime example of opportunity driven by policy shifts.
• He reiterated Bitcoin is “unequivocally the best inflation hedge,” citing its fixed supply and advantage over gold.
• Jones warned of risks including cybersecurity threats and quantum computing, despite backing its long-term macro appeal.

Veteran macro trader Paul Tudor Jones said on Tuesday that Bitcoin  (BTC) has emerged as one of the top inflation hedges, calling it the standout “inflation trade” during market upheaval.

“Bitcoin is unequivocally the best inflation hedge that there is more than gold, because Bitcoin is finite,” he said during the Invest Like The Best podcast. “There's only so much Bitcoin that can be mined.”

Jones used Bitcoin's 2020 rise as an example. Jones compared trading to a boxing fight in which investors wait for the opportunity to strike especially as he said Bitcoin remained one of the most appealing macro bets, calling it a rare “knockout” chance in the 2020 markets due to its deflationary feature. “Just Bitcoin, 2020 knockout… You have these incredible opportunities at times.” 

He said that such changes are often driven by major macroeconomic triggers, especially actions by central banks and governments that create imbalances in the economy. Bitcoin surged roughly 300% in 2020, climbing from around $7,000 to nearly $29,000 by year-end, according to CoinGecko data.

He also underlined structural concerns associated with the asset's digital nature, such as cybersecurity issues, as well as the longer-term consequences of quantum computing. However, Jones pointed to Bitcoin’s scarcity and decentralized character as crucial virtues in a period of increasing fiscal stimulus and monetary intervention, despite those worries.

Jones Calls Bitcoin Best Inflation Hedge

Paul Tudor Jones has been bullish on Bitcoin for some time now, calling it the best inflation hedge and a “great speculation.” Paul Tudor Jones first revealed he was investing in Bitcoin in May 2020, during the height of pandemic-era stimulus, calling it a hedge against inflation driven by central bank money printing.

At the time, he compared Bitcoin to gold in the 1970s, framing it as part of a broader “inflation trade” strategy.

Bitcoin’s price was trading at $76,148, down 0.9% in the last 24 hours. On Stocktwits, retail sentiment around the asset remained in the ‘bullish’ zone, while chatter stayed at ‘normal’ levels over the past day.

Read also: Michael Selig Says CFTC Will Use AI To Filter Crypto Applications, Target Fraud And Insider Trading: Report

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