During a recent CNBC interview, hedge fund legend Paul Tudor Jones says that he still has "a very minor" allocation in Bitcoin, the world's largest cryptocurrency. "I've always had a small allocation to it," he added.
Cryptocurrencies such as Bitcoin and Ethereum will have value "at some point" because of there is too much money. "I don't know when that will be, but it will happen." In fact, the billionaire believes that both cryptocurrencies will trade at much higher prices.
Jones revealed that he had bought Bitcoin in May 2020, calling it "great speculation." Last October, the billionaire said that crypto was winning the race against gold.
Macro uncertainty
Jones claims that a macro environment full of uncertainty is the best for investing.
Speaking of the U.S. Federal Reserve's rate hikes, their consequences remain largely unknown for now, according to Jones.
Jones claims that the U.S. monetary policy was pretty straightforward all the way up to 2018. In 2020, however, the Fed went overboard with quantitative easing to shore up the economy during the pandemic, and it then moved to dial back its support at a rapid pace, which caused extreme volatility.
"Inflation is a bit like toothpaste. Once you get it out of the tube, it's hard to get it back in. The Fed is furiously trying to wash that taste out of their mouth," Jones said.
Over the past 12 years, there has been massive experimentation with monetary policy, Jones says. However, the central bank has now made a complete U-turn.
Denys Serhiichuk
Arman Shirinyan