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Bitcoin has plenty of fuel in the tank to run over the next 20 years, feels billionaire investor Paul Tudor Jones.
The expert investor spoke with Yahoo Finance on Thursday when he expressed his predictions about Bitcoin’s future. He stated that he expects every nation to use a digital currency in 20 years, and hence, he believes cryptocurrencies could trade like the metals market. Going further with his analogy of metals, Jones said that Bitcoin could be traded like a precious metal, while other cryptocurrencies trade like industrial metals.
Jones is not the first big investor to feel Bitcoin’s future is strong. In recent years, several big investors and asset management firms have backed the crypto and have shown keen interest in investing in Bitcoin.
Along with the big players in the market, individual investors have shown increasing interest in cryptocurrencies. Bitcoin trading has seen a massive surge in recent years. Portals such as Bitcoin trader official site have seen a massive increase in trading activity. According to experts, the interest in Bitcoins is only going to increase in the upcoming times.
The path forward from here is north for Bitcoin: Jones
Paul Tudor Jones is a well-known investor and is known for his well-researched opinions. He is the founder of Tudor Investment Corporation. Talking about Bitcoin’s future, he said that Bitcoin would likely go “substantially higher” as digital currencies’ adoption increases. Bitcoin reached the record high of $19,918 on Monday and has surged over 150% in 2020. But Jones explained that Bitcoin’s market capitalization is less than $500 billion, significantly lower than the $9 trillion market capitalization of gold, indicating plenty of room to run for bitcoin.
Jones believes that there is no way possible today to know what the next 10 or 20 years will be like, and if he had to take a position again, he would take the brand name, Bitcoin. Jones said, “I’m going to assume that it’s the wrong price for the possibilities that it has and I’m going to assume that the path forward from here is north.”
Bitcoin phase like the dotcom boom of 1999: Jones
Apart from his metal analogy, Jones compared the current Bitcoin trading phase with the dotcom era. He stated that the price speculation around Bitcoin and audacious expectations of its potential remind him of how investors valued internet stocks in the dotcom era. He admitted that many of those internet stocks eventually crashed, but he pointed out that a few went on to become “dominant players” in the market. He further stated that Bitcoin reminds him of the internet stocks of 1999 because the internet was in its early stage. No one had the knowledge and expertise to value the internet because of the world of possibility that was yet to unfold.
Jones continues to back Bitcoin
This is not the first time Jones has openly backed Bitcoin. In a May investor letter, he had provided a lengthy discussion in an investor memo on how Bitcoin can become an inflation hedge, as monetary expansion funds additional debt, which was already sky-high before the pandemic came crashing down.
At the time, Jones had made a list of inflation hedges, and in that list, he positioned Bitcoin as No. 4. He called Bitcoin an investable asset that comes into the bracket of a store of value and is semi-transactional. He revealed that his profit-maximizing strategy was “to own the fastest horse” among the cryptos.
In the late spring, Jones wrote that the Federal Reserve and the U.S. government’s unprecedented money-printing and stimulus measures during the COVID-19 pandemic were the big reasons behind his newfound appetite for Bitcoin.