Earn Your First Bitcoin Sign up and get $12 Bonus Referral bonus up to $3,000
The idea that bitcoin was always a hedge against inflation has been rather prominent amongst crypto fans for the past few years. Now, according to Paul Tudor Jones – a bitcoin bull and billionaire hedge fund manager – it sounds like this idea may have reached its peak and is coming to an end.
Paul Tudor Jones: BTC’s Inflationary Hedge Days Are Ending
Many have long believed that buying bitcoin would somehow ensure their wealth and keep their portfolios steady should economic strife take hold. With assets like USD and other fiat currencies losing their value, the belief was that bitcoin could potentially work against inflation and other dollar-crushing maneuvers and keep one’s money pit nice and secure.
But Tudor Jones recently commented in an interview that he thinks the Fed is going to put a stop to the endless rate hikes we’ve seen the organization instill over the past year or so. With this on the horizon, one must assume that inflation will come to an end in the United States, and even if it doesn’t, it won’t be as harsh a problem as it has been over the past year. If this is the case, the days of buying bitcoin as an inflation hedge may be over. Jones commented:
If inflation is truly done a bit, if that story’s been played, then you have to wonder… We were buying gold and bitcoin for the inflation hedges. That game may be over.
Inflation has been striking the U.S. from all sides for well over a year. It hit a peak at more than nine percent in June last year. Thanks to weak leaders like Joe Biden, who has been in the habit of instilling poor economic policies and signing his name to a multitude of trillion-dollar spending bills, the country has been having to deal with rising food prices, gas prices, and just about everything else.
This has ultimately led the Fed to raise interest rates as a means of fighting the ongoing inflation. However, this tactic hasn’t really done much except destroy crypto prices (remember 2022, anyone?) and prevent people from gaining access to the American dream. With rates being what they are, most people can no longer afford homes, cars, or other big items.
I’m Still Holding Mine
But while Jones is confident the initial goals of BTC holders will change, he’s still very much for keeping the asset as part of your portfolio. He stated that he’ll always allocate at least some small part of his wealth to BTC, saying:
From the beginning, I’ve always said I want to have a small allocation to it because it’s the only thing humans can’t adjust the supply in, so I’m sticking with it, and I’m going to always stick with it as a small diversification in my portfolio.
Source: Read Full Article