Paul Tudor Jones still owns cryptocurrencies and explains why they will have value long term
Paul Tudor Jones said Monday cryptocurrencies still hold a small place in his portfolio despite the recent sell-off. “I’ve still got a very minor allocation. I’ve always had a small allocation to it,” Jones said on CNBC’s ” Squawk Box ” on Monday when asked about crypto. The founder and chief investment officer of Tudor Investment Corp. said in the last decade, the U.S. went through a “massive experimentation” with monetary and fiscal policies and the 2020s will see a reversal of that. “The [’10s] is all about suppressing yields right? I think the ’20s will be just the opposite, meaning higher term premiums in bond markets, higher term premiums in stock markets,” Jones said. Jones believes that debt dynamic is so dire right now that the government could conduct fiscal retrenchment in the near future. Fiscal retrenchment means that a government has to introduce deflationary fiscal measures to reduce the amount of borrowing and debt, including raising taxes and cutting spending. “In a time when there’s too much money, which is why we have inflation, too much fiscal spending, something like crypto specifically bitcoin and ethereum, when there’s a finite demand of that, will have value at some point. Someday. I don’t know when that will be,” Jones said. Bitcoin dropped below $20,000 in August and continued to trade under that threshold as investors dumped risk assets after the Fed affirmed its commitment to an aggressive tightening path.
