Billionaire hedge fund manager Paul Tudor Jones explained Tuesday why Bitcoin still bullish despite its flat price in recent months. He believes that the crypto ecosystem is part of a broader trend toward a borderless internet and a globalized world, and that younger generations will bring it about.
Centralization VS Decentralization
Speaking to Squawk Box’s Joe Kernen, Jones specifically described a “generational” and “digital” divide around Bitcoin. While members of the old generation, like himself, are “crawling” to understand the technology, young students graduating from college today are flocking to the crypto industry.
“It’s hard not to want to be in crypto for long because of the intellectual capital that’s pouring into this space,” he said.
Studies consistently show that age is a strong predictor of interest in digital assets. A CNBC poll last year found that 83% of millennial millionaires are investing in crypto. A more recent Ipsos survey shows that over a quarter of Americans ages 18-34 are somewhat likely to use crypto to buy products in the next year, versus just 6% of those over 50.
Jones went on to describe crypto as the dream of a borderless internet where the Blockchain Serves as a verification layer that anyone can connect to. However, it is precisely this characteristic that makes them the enemy of legacy institutions such as governments and central banks. Specifically, he claims that their opposition to using bitcoin as a medium of exchange is the “number one thing holding it back.”
“They’re not going to get government purchases because they lose the ability to control how money is created and made available,” Jones explained.
Bitcoin has a fixed supply of 21 million coins, which has made it known as a potential “digital gold” immune to central planner currency debasement. Jones has previously stated that he believes Bitcoin is “winning” the race against gold.
Alternatives to the local currency
The billionaire also believes crypto is particularly attractive for storing value without having to be denominated in a local currency.
Bill Miller – another billionaire hedge fund manager – made a similar claim after the collapse of the Russian ruble in March. He said the ordeal is “very optimistic for Bitcoin” as Russia may be looking for alternative stores of value that other countries can’t buy from them.
Both Jones and Miller hold positions in Bitcoin – the former is described as “modest,” while the latter accounts for up to 50% of his portfolio.
Source: Crypto News Deutsch