Paul Tudor Jones Says Bitcoin Has an Edge Over Stocks

Geopolitical risks and rising US debt complicate investments in stocks, but gold and Bitcoin are attractive options. In an interview with CNBC, billionaire Paul Tudor Jones said so.

The founder of the Tudor Investment Corporation described the United States’ debt-to-GDP ratio, at 122%, as “probably the weakest since World War II.”

“As U.S. interest rates rise, you fall into a vicious circle: higher financing costs, greater debt issuance with further liquidity drain. That leads to further rate rises, which puts us in an untenable financial position,” Jones explained.

According to him, the war between Israel and Hamas has created a challenging geopolitical environment for risk assets. Before investing again in such products, the billionaire intends to assess the consequences of the conflict. He did not rule out the possibility of a nuclear war due to Iran’s alleged role.

“I can’t love stocks, but I love Bitcoin and gold,” he stressed.

In 2021, Jones pledged that to allocate 5% of his capital to the first cryptocurrency due to the Federal Reserve’s policy in the United States. Prior to that, he valued his Bitcoin holdings at $100 million. At that time, it was equivalent to about 1-2% of his wealth.

A year later, he confirmed that he continues to hold a position in digital gold.

Earlier in May, Jones again reaffirmed his commitment to Bitcoin, but expressed concerns about the unfriendly regulatory environment for cryptocurrency in the United States.