In a recent interview with CNBC’s Squawk Box, legendary investor Paul Tudor Jones doubles down on his bullish stand for Bitcoin and crypto. Tudor Jones believes there are two main reasons why the digital asset sector could extend its gains.
Related Reading | Why Paul Tudor Jones Made This Ominous Prophecy For Bitcoin
The first reason is the intellectual capital, the legendary investor believes that younger generations will support the growth of the nascent asset class. Tudor Jones claims that, even within his own inner circle, young people are gravitating towards crypto and digital assets. He said:
If you look, and I see it all the time in our Quant group, I see it all the time in my kids’ friends, if you look at the smartest and brightest minds that are coming out of colleges today so many of them are going into crypto. So many of them are going into the internet 3.0. It’s hard not to want to be long (…).
Tudor Jones believes that the digital asset industry has great “intellectual capital”. As Bitcoinist reported, other actors within the industry have confirmed a “brain drain” from traditional finances into digital assets.
Better salaries, compensations, and more participation at a managing level have made the space more attractive to people with decades of experience in finances, law, business development, computer science, and others.
However, governments and legacy financial institutions are opposing digital assets and their promise of an open and “borderless” world, as Paul Tudor Jones called it, its ultimate dream. He added:
Clearly central banks and central governments aren’t going to necessarily be huge fans of that. Particularly when it comes to using crypto as a medium of exchange. That’s the number one thing that is holding it back. You’re not going to get buy-ins from governments because they lose the ability to control the creation and supply of money (…).
Why Crypto Will Have A Bright Future
The global trend is toward de-globalization, Tudor Jones believes. The war in Ukraine and the financial consequences for the Russian Federation, cast aside from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), seems to support that.
In this new world order, borderless and decentralized assets, such as Bitcoin, will become more valuable. Tudor Jones said:
I got my modest allocation to crypto. I have a trading position on top of that. It goes from fully invested to zero. Right now, I’m modesty invested. I would think it is going to have a bright future. A lot of it depends on what our central bank (Federal Reserve) will do (…).
The U.S. Federal Reserve has been hinting at a 50 basis points increase in interest rates. This has negatively impacted the crypto market and the legacy financial sector.
However, Tudor Jones believes that inflation hedges such as Gold and Bitcoin will have “another leg higher”. The same could happen if the Federal Reserve turns dovish on its monetary policy in an attempt to prevent an economic recession.
Related Reading | Why Paul Tudor Jones Prefers Bitcoin Over Gold To Hedge Against Inflation
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