Paul Tudor Jones: Bitcoin a stronger inflation hedge than gold

Paul Tudor Jones, founder of Tudor Investment Corporation, told the Invest Like the Best podcast on Tuesday that he considers Bitcoin the strongest inflation hedge and ranks it above gold. He argued that Bitcoin’s fixed supply and scheduled issuance limit make it a better store of value when governments expand monetary and fiscal support.

Jones contrasted Bitcoin with gold, noting that gold’s supply increases each year while Bitcoin’s does not. He pointed to the 2020 price surge as an example of Bitcoin acting as an inflation trade.

Bitcoin is unequivocally the best inflation hedge that there is — more than gold,

he told the podcast.

On broader markets, Jones compared current S&P 500 valuations to the 2000 dot-com bubble and noted that stock market capitalization relative to GDP sits near historic extremes. He warned it will be “really hard to make money” in stocks over the next decade at those valuation levels and added that a major market correction could reduce capital-gains tax receipts and strain the bond market, worsening the federal deficit.

At the time of the interview, Bitcoin traded near $77,500 and several top tokens were up 1% to 3% in intraday trading ahead of a FOMC meeting.

Jones has a long history as a macro trader and hedge fund manager and has previously expressed interest in allocating a portion of portfolios to Bitcoin as a hedge.