Bitcoin, cryptocurrency and gold

Potential Bitcoin Breakout After $10,000 & Halvening + Billionaire Paul Tudor Jones Endorsement

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With Bitcoin on the cusp of $10,000 and the Halvening in just a few days, we might be on the verge of a major breakout. Billionaire investor Paul Tudor seems to think so. He bought BTC as a hedge against inflation, calling it “the fastest horse in this environment.”

Bitcoin Bombshell: Paul Tudor Jones

It isn’t often that billionaires come out in favor of digital currencies. Usually mainstream investors vocalize that bitcoin and other cryptos are too volatile. However, we are in an unusual time and crypto investing talk was on fire across social media today. In an inflationary era, people look for stores of value to protect their wealth. Often this is in the form of gold and other physical assets. However this can sometimes require moving physical gold bars from one location to another in order to settle trades. This is not the case with bitcoin and other digital assets that can move in cyberspace with no effort. Therefore, if inflation ticks up, then bitcoin may go up further as well.

According to Paul Tudor Jones, bitcoin will be a hedge against central bank money printing. Jones is a macro investor and indicated that the Tudor BVI Fund will now trade bitcoin futures. He sees it filling a need for “new safe assets” during an inflationary period, particularly one where we have “the most unorthodox economic policies in modern history.” The world is on lockdown amid the COVID-19 crisis, and this has inspired PTJ’s bullish outlook.

Gold Price Breakout, 1976 vs Bitcoin 2020. Source: Paul Jones & Lorenzo Giorgianni

According to Jones, bitcoin is “the only large tradeable asset in the world that has a known fixed maximum supply.” Compare this with gold, which you can still dig out of the ground, or oil, which is currently in over-supply.

Jones compared bitcoin to gold in 1976, when the price nearly tripled.

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