Can Bitcoin Dodge the Inflation?

Can Bitcoin Dodge the Inflation?

Cryptocurrency News
May 15, 2020 by admin
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Paul Tudor Jones, the billionaire hedge fund manager, is looking for a way to round trip the inflation. There are ways for doing so, including printing money that all the central banks across the world are doing.
Can Bitcoin Horse Dodge the Inflation?

Tudor is the founder of Robin Hood foundations, the CEO as well as the founder of Tudor Investment Corp, and one of the most successful hedge fund managers in the world. He is the most reputed person on Wall Street as well. This reputation was granted considering his successful predictions. His brilliant prediction of the 1987’s economic crash along with Japan’s economic crash made him the big-name this prominent investor he is now. Recently he seems to believe investing in cryptocurrencies can be useful for the purpose of dodging inflation.

Regarding future investments, he believes that soon there will be inflation due to the large amount of money printed by central banks across the world since the COVID-19 pandemic. To skip its affect one potential way is to invest in Bitcoin. Many economics are experiencing a colossal GDP contraction since the coronavirus pandemic, therefore central banks all over the world attempted to print money to decrease the effect.
Tudor illustrated that Bitcoin reminded him of gold and how it performed in the 1970s. He further demonstrated by saying that “The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.”

Tudor informed the clients that Tudor BVI holds a small share of its assets in Bitcoin, ensuring the aegis against the inflation. His first investment in Bitcoin was in 2017, while he predicted Bitcoin will cross its rivals according to four characteristics of purchasing power, trustworthiness, liquidity, and portability.
Interestingly the hedge fund manager has predicted Bitcoin’s stock market will experience an upward trend provided the peak of COVID-19. With the Coronavirus breaks out and all its consequences people are now more than ever obsessed with unemployment, inflation, stock market, and gold price. Well, we might be looking the wrong way since the biggest financial risk resides in the debt market. The market also called the Bond market, is the arena to buy and sell investments in loans without any physical exchange. The majority of investees in this market are the brokers or large institutions and sometimes individual investors.

The US federal’s attempt to solve the problem posed by this market was to give overnight loans. The idea was that the market has been facing the shortcoming of money and loans can solve it, though no amount of loans or even money printing could settle such conflict.  Bitcoin is a potential solution according to Tudor.

References
https://en.wikipedia.org
https://Bloomberg.com
https://Investopedia.com
https://Blockchain.news

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