Paul Tudor Jones Backs Bitcoin, Sees Inflation as Inevitable

The renowned billionaire investor mentioned on CNBC during an Oct. 22 interview that “all paths lead to inflation.” He emphasized his bullish stance on both gold and Bitcoin, noting that commodities are incredibly “ridiculously under-owned.”

“I likely have a portfolio that includes gold, Bitcoin, commodities, and Nasdaq—something in that range. And I own absolutely no fixed income.”

“I’m bullish on gold, I’m bullish on Bitcoin, and I see commodities as vastly under-owned, so I’m also bullish on commodities,” asserts @ptj_official. “I probably have a mix of gold, Bitcoin, commodities, and Nasdaq, that sort of thing. And I have zero involvement in fixed income.” pic.twitter.com/i152rZFlbs

— Squawk Box (@SquawkCNBC) October 22, 2024

Assets That Store Value Are Paramount

Bitcoiner Anthony Pompliano weighed in on the insights, quipping that it was “likely nothing!”

“Paul Tudor Jones going bullish on Bitcoin and gold speaks volumes,” replied the PiWhales account to its 514,000 X followers.

“Inflation as a solution to the debt concern could enhance the appeal of decentralized assets like Bitcoin,” it further elaborated.

On Oct. 21, Bitcoin was within 6.5% of its peak price, but it has since slipped back to the $67,000 mark over recent days.

Gold prices have skyrocketed by 33% this year, trading above $2,750 for the very first time. Meanwhile, silver has reached its highest value since 2012, rising over 46% in 2024.

Jones indicated that inflation is inevitable regardless of central bank actions due to the need to address debt-to-GDP issues.

“If we’re aiming to stabilize debt to GDP, we should adopt the most dovish monetary policy possible without letting inflation significantly burden the population.”

The US public debt as a percentage of gross domestic product currently stands at 120%, according to data from the Federal Reserve Bank of St. Louis.

A high debt-to-GDP ratio can restrict a nation’s ability to manage economic shocks, heighten the risk of debt defaults, and lead to elevated interest rates. It may also result in a vicious cycle of debt, inflation, and diminished economic growth potential, ultimately putting at risk the nation’s long-term economic stability.

The national debt of the US has ballooned to a staggering $35.7 trillion and is rising rapidly.

It took 221 years for the US to accumulate its first $12 trillion of national debt.

We accrued another $12 trillion in debt just in the last 5 years.

Unbelievable. pic.twitter.com/Y4CmOGI1bH

— Anthony Pompliano (@APompliano) October 22, 2024

Conflicting Views Among Central Banks

Nonetheless, the global central banks, the architects of monetary policy, may present a contrasting narrative. In its World Economic Outlook report published on Oct. 22, the International Monetary Fund asserted that “the fight against inflation is largely won.”

Inflation rates surged globally during the Covid lockdowns, yet they have since begun to decline. Still, the authentic rate of inflation continues to rise for ordinary consumers, reflected in skyrocketing costs for fuel, food, energy, and utility bills in many countries.

Paul Tudor Jones indicated warnings about inflation back in 2022, foreseeing an uptick in Bitcoin and Ethereum prices.