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Paul Tudor Jones Believes Crypto will have Bright Future

Tyler Irvin

Summary: Billionaire hedge fund manager and philanthropist, Paul Tudor Jones believes crypto is going to have a bright future, but notes the horrendous investment environment upon us during his appearance on CNBC’s “Squawk Box,” Tuesday.  He also pointed out that just the intellectual capital going into the crypto space is enough for him to take it ...

Billionaire hedge fund manager and philanthropist, Paul Tudor Jones believes crypto is going to have a bright future, but notes the horrendous investment environment upon us during his appearance on CNBC’s “Squawk Box,” Tuesday. 

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He also pointed out that just the intellectual capital going into the crypto space is enough for him to take it seriously. 

“I see a generation divide, it’s a digital divide…if you look at the smartest and brightest minds coming out of college today, so many of them are going into crypto, so many of them are going into the internet 3.0,” said Jones. “It’s hard not to want to be long crypto because of the intellectual capital, just the sheer amount of intellectual capital going into that space.” 

On top of his modest allocation to crypto, he has trading positions that go from fully invested to zero, saying that he is currently modestly invested in the space. He concluded his talk on crypto saying that the future of digital assets depends on the central bank and what they decide to do. 

In general, he believes that most governments do not want it to succeed because of its decentralized nature, but points out that it could be a tool to fight inflation. He continued his interview talking about inflation and the extremely difficult situation the economy is in at the moment. 

“You can’t think of a worse environment than where we are right now for financial assets,” Jones said. “Clearly you don’t want to own bonds and stocks.” 

The Fed is expected to increase its benchmark interest rate by a half-percentage point on Wednesday to mitigate surging inflation that stands at a 40-year high. 

The co-founder of the Robin Hood Foundation reiterated we are in “uncharted territory” and we haven’t seen anything like this since the 70s. He urged investors to prioritize capital preservation in such a challenging and tumultuous time. 

“I think we’re in one of those very difficult periods where simple capital preservation is I think the most important thing we can strive for,” Jones said. “I don’t know if it’s going to be one of those periods where you’re actually trying to make money.”

Many people on Wall Street believe our economy lies in the hands of the Fed and one wrong move could send it spiraling down.

“They’ve got inflation on the one hand, slowing growth on the other, and they’re going to be clashing all the time,” Jones said.

Despite his warnings, he did have some advice, suggesting to consider owning trend-following strategies, which use algorithmic models to identify trends in the markets.

“If there was a strategy that I would want to employ right now, if someone put a gun to my head, I’d say simple trend-following strategies,” Jones said. “They are not too popular today. ... They will probably do very well in the next five to 10 years.”

Author: Tyler Irvin

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