Paul Tudor Jones' investment rationale for Bitcoin: an excellent hedge against inflation.

Last night, CNBC was the first to report an interview with renowned Wall Street hedge fund manager Paul Tudor Jones, discussing his recent views on Bitcoin. Paul Tudor Jones, referred to as PTS below, made some impactful statements, including likening "buying Bitcoin to investing in Apple and Google stocks in the early days" and stating "I've never been more bullish on Bitcoin."

More importantly, what are his underlying premises and reasons?

Premise: Single-Digit Percentage Investment

PTS once again stated that only a single-digit percentage of their assets is invested in Bitcoin, emphasizing that they are not a believer in Bitcoin.

Reason: Bitcoin is Beneficial for Hedging Inflation

During an interview, PTS stated, "What I've learned and found surprising about Bitcoin is that there are many people worldwide working to make it a universal store of value. Never have I seen so much intellectual capital behind an asset for storing value or hedging against inflation. When you short the bond market to hedge against inflation, you are essentially betting against people's fallacies rather than their wisdom."

Note: Intellectual capital can be seen as intangible assets derived from human intellect, technology, organizational structure, and relationships.

He believes that in inflation trades, Bitcoin, along with gold, inflation-resistant bonds, and copper, is one of the investment options, with Bitcoin being the best choice.

Hasu, a researcher at the well-known options exchange Deribit, particularly appreciates PTS's description here, as he believes that hedging against inflation is betting against human nature, and the existence of Bitcoin also bets against human nature. He further explains that betting against human nature refers to the financial system transitioning from the gold standard to the current system controlled by governments and central banks for monetary policy, a system that is likely to lead to significant inflation and failure. The Deputy Governor of the Central Bank of Taiwan has also written about the hidden dangers of unlimited printing of banknotes leading to inflation concerns: "Deputy Governor of the Central Bank of Taiwan's Article: Retail CBDC May Save Inflation, but Central Bank Disintermediation Will Generate Risks."

PTJ said something incredible on CNBC today.

"I've never seen a store of value where you also have [such] great intellectual capital behind it. […] When you short the bond market as an inflation hedge you're really betting on the fallacy of mankind rather than its ingenuity."

— Hasu⚡️🤖 (@hasufl) October 22, 2020

In fact, in a report from May, it was already mentioned that Tudor Investment, an institution under PTS, holds Bitcoin futures positions rather than spot positions. In his letters persuading investors to pay attention to Bitcoin, he has consistently emphasized Bitcoin's track record in hedging against inflation.

Based on his past statements, this seasoned Wall Street investor believes that significant inflation will occur, and Bitcoin will be a good asset for hedging against inflation. Currently, we see three publicly listed companies, MicroStrategy, Square, and Mode, investing in holding Bitcoin assets, showing good performance in their stock prices after buying Bitcoin, whether for inflation resistance or marketing purposes.