Paul Tudor Jones, a legend in the space of hedge fund management, made waves this month when he spelt the potential of Bitcoin as part of a portfolio. The fund manager has now taken it a step further stating that he has about two percent of his portfolio in the digital asset, but actually believes it will be the best performing asset he invests in.
This statement from Jones represents part of the mind shift change towards Bitcoin as an asset, especially at a time where the global markets are in turmoil and Bitocin is performing well, and in anti-correlation to other traditional markets.
Jones said on Monday:
“It’s a great speculation. I’ve just got something … just over 1% of my assets in bitcoin. Maybe it’s almost 2. That seems like the right number right now. Every day that goes by that Bitcoin survives, the trust in it will go up.”
But more than that, the manager said he expects that two percent to be his best performer and it is down to digitalization of the globe and the way things are changing in relation to money.
Digitalization suits Bitcoin
Because of the way the world is going, and its attitude towards cash is certainly changing, so Jones believes this will make the case for Bitcoin to be a store of value.
“The digitization of the world clearly benefits Bitcoin. We wouldn’t even be talking about Bitcoin if we weren’t seeing first cousins like Venmo and others coming up. My children don’t even carry cash, they barely even know what cash is. We are clearly digitizing the global economy and we are seeing some countries do it explicitly like India, and other countries are on their way to do it, like China. We are getting into an increasingly digitized world and Bitcoin will be that much more accessible by that universe of people that could own it as a store of value,” he said.
“When you think of every bull market, every single bull market has one common thread — an ever expanding universe of people who own it. SO the estimate is that between 55 and 70 million people own it, but if you are buying Bitcoin your bet is that number is going to go to 120 million, or 200 million. It is hard when you look around and see that the world is becoming increasingly digitized not to think the evidence doesn’t point in that direction.”
“When I think of Bitcoin I think of it as one tiny part of a portfolio, it may become the best performer of all of them, I kind of think it might be, but I am very conservative and I am going to keep a tiny percent of my assets in it, and that’s it. It has not stood the test of time like an asset like gold has, which has been a store of value for 2,500 years.”