- Paul Tudor Jones recently stated that the days of using Bitcoin as an inflation hedge may be over.
- The U.S. has been dealing with high inflation for the past year due to weak economic policies and excessive spending.
- Despite this, Paul Tudor Jones still recommends holding Bitcoin in one’s portfolio.
Paul Tudor Jones: BTC’s Days as an Inflation Hedge Are Over
Paul Tudor Jones – a bitcoin bull and billionaire hedge fund manager – recently commented in an interview that he thinks the Fed is going to put a stop to the endless rate hikes we’ve seen the organization instill over the past year or so. With this on the horizon, one must assume that inflation will come to an end in the United States, and even if it doesn’t, it won’t be as harsh a problem as it has been over the past year. If this is the case, the days of buying bitcoin as an inflation hedge may be over. Jones commented: „If inflation is truly done a bit, if that story’s been played, then you have to wonder… We were buying gold and bitcoin for the inflation hedges. That game may be over.“
Inflation Taking Hold of US Economy
Inflation has been striking from all sides for well over a year in America. It hit a peak at more than nine percent in June last year due to poor economic policies implemented by Joe Biden’s administration such as signing his name to trillion-dollar spending bills which have resulted in rising food prices and gas prices. The Fed has had no other choice but to raise interest rates as a means of fighting off ongoing inflation; however, this tactic hasn’t really done much besides destroy crypto prices and prevent people from gaining access to basic financial needs like homes or cars.
Holding Bitcoin Still Recommended
Despite claiming that Bitcoin’s days of being used as an inflationary hedge are coming to an end, Paul Tudor Jones still recommends holding BTC within one’s portfolio saying: „I’m still very much for keeping [Bitcoin]“. This sentiment could potentially bring more investors into crypto markets who previously hesitated due its volatility and uncertain future – giving way for potential growth opportunities in time ahead.
After hearing Paul Tudor Jones‘ thoughts on Bitcoin no longer being used effectively against inflations risks might cause some uncertainty amongst cryptocurrency holders; however, it should also invited more investors into crypto markets with its potential growth opportunities down the line after seeing how successful BTC has become when held long-term.