Bitcoin has been spiking as of late thanks to news that PayPal is permitting users to purchase goods and services with cryptocurrency. However, according to Paul Tudor Jones, inflation is so bad right now that this is proving to be a heavy motivator behind everyone trying to get their fingers on bitcoin.
Paul Tudor Jones Has Some Praise for BTC
While news of PayPal accepting bitcoin payments is certainly huge, Jones – a billionaire investor – comments that people’s attitude towards bitcoin is changing heavily ever since the coronavirus took hold. The fact is that last March, financial markets were hit hard by the pandemic to the point that stocks lost millions of dollars and bitcoin, itself, suddenly faced a price in the high $3,000 range. That’s nearly $7,000 less than where it was trading during the previous four weeks.
Paul Tudor Jones explained that inflation trends are going to continue to push the bitcoin price into taller regions. As it stands, the currency is trading for just shy of $13,000 at the time of writing and is at its highest point since late summer of last year. Many are viewing bitcoin as a means of hedging their wealth and keeping their assets safe during times of economic uncertainty.
In a recent interview, Jones explained:
I came to the conclusion that bitcoin was going to be the best inflation trade.
In other words, people can expect it to remain stable enough that should everything else fall, bitcoin will not let them down. It is becoming very much what its creator initially said it would be: digital gold. For many years, gold was considered the sturdiest asset as it rarely moved downward, even during harsh economic strife.
However, the coronavirus pandemic also proved hazardous to the world’s primary precious metal, and the price of gold suffered briefly before recovering like everything else. Now, Tudor Jones says that holding bitcoin is the equivalent of holding Apple or Google stock back when these companies first got started. While their stock shares are huge and expensive now, it’s simply because these companies have seriously established themselves over the years, and investors are likely happy they purchased stock early in the game.
Getting Further Into Mainstream Territory
He says that bitcoin is comparable to large tech stocks in that it’s likely to explode greatly over the years, and that all who invested early are going to reap some heavy rewards. He has commented that bitcoin and other cryptocurrencies have the backing of “really, really smart and sophisticated people,” and that his company – Tudor Investment Corp. – has even purchased a small stake in the asset similar with what companies like Square, MicroStrategy and Stone Ridge have done.
In the meantime, investors like Mike Novogratz are saying that bitcoin is likely to explode now that it has entered more mainstream territory thanks to the recent announcement from PayPal.