Paul Tudor is ahead of the future

in LeoFinance4 years ago

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American tycoon and billionaire Paul Tudor revealed that he is acquiring bitcoin futures contracts as a mechanism to guard against a possible global wave of inflation. Tudor confessed that, given the massive fiscal expense for the expansion of the coronavirus, the first cryptocurrency could benefit.

In a note on the market outlook titled "Great Monetary Inflation, if I am forced to forecast, my bet will be bitcoin," Tudor reported that one of its funds, Tudor BVI, will hold assets with bitcoin futures, as reported by Bloomberg. .

I'm not a fan of hard money or a crazy cryptocurrency. The most compelling argument for owning bitcoin is the upcoming digitization of the currency everywhere, accelerated by COVID-19
indicated the investor

Tudor is one of those who thinks that bitcoin has potential in an unorthodox policy scenario, so he decided to adapt his investment strategy. The Tudor BVI fund's exposure with bitcoin futures was reported to represent a single-digit percentage.

In the letter, Tudor explained that bitcoin reminds him of gold when he started his investor career in 1976. In addition, he made a comparison of the behavior that both assets have experienced over the years and how there are similar patterns, according to his point of view. view.

Futures and inflation contracts

Bitcoin's futures contracts began trading in December 2017 through Cboe Global Markets. Days after it started, the bitcoin price reached the highest price in its history, around $ 20,000 per unit.

It is a mechanism to attract institutional investors who wish to indirectly enter the world of cryptocurrencies, in this particular case, bitcoin.

Tudor's expectations, about what could happen with the arrival of an inflationary wave, are related to a report prepared by the firm BitMEX Research, which indicates that a potential inflationary escalation would raise the price of bitcoin. The agency not only talks about inflation coming, it will be abrupt and a shock will be generated in the economies.

In an analysis published by CriptoNoticias, on April 27, it was explained that the gigantic printing of money in the United States, for example, would have a "boomerang" effect on the dollar. In other words, the currency may serve to contain a potential economic recession, but it could also put pressure on inflation by 2021.

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