It is interesting how certain names can be household names in one place but meaningless in another. This is how it was for me with Paul Tudor Jones. After looking him up I felt that I should have heard about him, but whatever, I now know who he is and why he is considered such a big deal in the hedge fund/investment management community. There is a great documentary about him here.
A long term sceptic of Bitcoin, he has become a convert. His May 2020 interview on CNBC can be seen here.
In his latest newsletter he seems to have coined the phrase the ‘Great Monetary Inflation’. His letter (see here) sets out the case for hedging against inflation and the type of assets which make the best hedge. He concludes that Bitcoin will be the ‘fastest horse in the race’ and that his fund now holds up to 2% (circa USD 400m) in Bitcoin.
Some great quotes from his Must Read newsletter are :
‘We are witnessing the Great Monetary Inflation (GMI)
— an unprecedented expansion of every form of money unlike anything the developed world has ever seen.’
‘…in a world that craves new safe assets, there may be a growing role for Bitcoin…’
On Debt addiction he says that ‘…At this pace, it is not inconceivable that the economy-wide debt ratio may increase by 50% of GDP over the next year and a half…’
On Money Printing he says that ‘…High debt accommodated by money printing is difficult to banish. Inflation expectations could one day respond to this reality. It is the risk of fiscal dominance that makes the current GMI potentially inflationary during the next cyclical upswing…’
On Bitcoin (as a hedge against the Great Monetary Inflation) he says
‘…I also made the case for owning Bitcoin, the quintessence of scarcity premium. It is literally the only large tradeable asset in the world that has a known fixed maximum supply…’
‘…The most compelling argument for owning Bitcoin is the coming digitization of currency everywhere, accelerated by COVID-19. Bull markets are built on an ever-expanding universe of buyers. Central to the price of Bitcoin is how many more (or less) owners of Bitcoin will there be beyond the 60 million who currently own it?..’.
The price of Bitcoin today = USD 9,296.