- Paul Tudor has drawn similarities between bitcoin and mathematics as he expressed his confidence in the crypto.
- The billionaire hedge fund manager made his opinion known in a recent interview with CNBC.
- He reiterated his confidence in the asset by describing it as a store of wealth and a means to diversify his portfolio.
- He also commented on the key role that the Federal Reserve will play in the future decisions of investors.
Bitcoin has gained yet another enthusiast in the form of Paul Tudor after he extolled the virtues of Bitcoin in an interview with CNBC. The American, billionaire hedge fund manager described Bitcoin as being similar to math and further portrayed the asset as being a great mechanism for the store of wealth.
The interview which was held on Monday, June 14th, saw Tudor hail Bitcoin as a “portfolio diversifier,” amongst other things, and stated that he does not mind allotting 5% of his fortune to bitcoin. The billionaire also spoke of the vital role the Federal Reserve will play in determining the manner he will invest the other 80% of his wealth.
Bitcoin and Math: An Uncanny Comparison
In an interview with CNBC on Monday, June 14th, Paul Tudor underlined the striking resemblance Bitcoin bears to math. The reason for the comparisons, according to the hedge fund manager, lies in Bitcoin’s consistency and reliability. He elaborated on his analogy by explaining that “math has been around for thousands of years” and he fancies the idea of investing in something that is as “reliable, consistent, honest and 100% certain” as math, and now Bitcoin, seems to be. The billionaire further expressed that, as a means of investing with certainty, Bitcoin struck a chord within him.
Tudor also drew comparisons between Bitcoin and human nature, ruminating on the dichotomy in the policies of the Federal Reserve between 2013 and 2021, stating that “faith in reliability and consistency of human nature” was similarly questionable.
Even among the current sentiments revolving around bitcoin’s prices, Tudor asserted that Bitcoin is the perfect mechanism with which to diversify and protect his wealth over a long period.
In an attempt to elaborate on the diversification properties possessed by Bitcoin, he referred to the asset as a “story of wealth” conveying his desire to evenly split 20% of his wealth amongst gold, bitcoin, commodities, and cash. He then disclosed that he remains undecided on what he will do with the remaining 80% while he waits to find out “what the Fed is going to do.”
On the Flipside
The Federal Reserve Will Influence the Future
According to Paul Tudor, the Federal Reserve will play a huge role in the manner he chooses to invest the remaining 80% of his wealth. The Federal Reserve will conclude its two-day policy meeting on Wednesday, June 16th, and Tudor has stated that he will be paying close attention to the results of the meeting.
During his interview with CNBC, Tudor posited that if the Federal Reserve maintains its nonchalant stance on inflation, it would be his cue to “go all-in on inflation trades.”
He disclosed that he will probably buy commodities, crypto, and gold, but should the Fed unsettle the markets, then a “taper tantrum” could be expected.
It is assumed that, upon the conclusion of the conference, Chairman Jerome Powell will hold a news conference following the Reserve’s official statement. The head of the Federal Reserve, among other officials, holds the opinion that this period of inflation is merely temporary while the economy makes its recovery from the harsh effects of the Covid-19 pandemic.