Bitcoin has become so popular that it is attracting billionaires now. A while back these rich people used to call BTC a scam but now they are convinced about its future. One such person is Dallas Mavericks owner Mark Cuban who was not at all impressed by Bitcoin but changed his mind recently. And now we have another candidate on the list, Paul Tudor. Earlier he was skeptical but now he says that that investing in Bitcoin is going to give him a certain way of certainty.
Bitcoin saves you from inflation
One of the biggest reasons that many billionaires are looking to get into Bitcoin is inflation. They obviously wouldn’t want their empire to lose value over time and Bitcoin will be able to do that effectively. Paul Tudor also believes in the same ideology. He says that Bitcoin is like math and there is a certainty in it like adding 2+2. This might be a reference to the limited number of Bitcoins that will ever be.
Paul Tudor is not going all in Bitcoin but wants it to be at least 5% of his portfolio. Other than that he has also added 5% gold, cash, and commodities on the same. He neither believes in the Fed’s nature nor the government’s. So, this investment becomes even more important. His 5% allocation is also a massive jump from the 1-2% that he recommended last year.
Paul also said that the inflation rates are on the rise. The federal reserve meeting that is soon going to happen is going to be important for the investment decisions he takes in the future. If the officials continue to say that these inflation rates will drop and don’t do anything, then betting on inflation trades becomes kind of mandatory.
Why is Bitcoin so important?
Prices of everything are on the rise in the US due to the pandemic and the continuous stimulus checks. The government is unable to control inflation and the dollar is losing its value pretty fast. This is why Bitcoin becomes important. Due to its limited nature and pricing in dollars, it becomes de-inflationary. That means it doesn’t just beat inflation it rises in value. At the same time, Bitcoin has given a CAGR of over 200% in the last 10 years which is big data. All this combined makes it a very solid investment for those looking to multiply wealth and also those who are looking to beat inflation.
The recent taproot upgraded that was recently locked in and the lighting network can also make it possible for Bitcoin to be used as a currency. El Salvador has already made it a legal tender, soon other countries will too.
What are your thoughts on Paul Tudor saying that he likes Bitcoin? And do you think that that we will soon see investment from his side? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.