Michael Saylor: Paul Tudor Jones Would’ve Invested More in Bitcoin If He Understood It
Hedge Fund manager Paul Tudor Jones recently said he had invested 1% of his assets into Bitcoin, but a 1% allocation has led MicroStrategy CEO Micahel Saylor to questioned Tudor Jones’ understanding of Bitcoin.
Tudor Jones, a Wall Street legend who famously shorted the markets before Black Monday and squeezed out a huge earning from the Japan bubble that burst in 1990, came out earlier this summer saying it was time to back Bitcoin, calling it the ‘fastest horse’.
According to the Microstrategy CEO, however, Tudor Jones would have invested much more if he really understood Bitcoin.
Paul Tudor Jones Would’ve Invested More in Bitcoin If He Understood It
Speaking on the Stephan Livera podcast, Michael Saylor shared his absolute conviction in Bitcoin and explained why he put almost all the treasuries of his Nasdaq-listed company into Bitcoin.
MicroStrategy invested $425 million, buying 38,250 bitcoins.
It was a move that shook the world, including the most ardent Bitcoin Maximalists. Many had been expecting institutional money to start coming in, and Tudor Jones’ 1% allocation wasn’t a surprise, even though it was most welcome.
MicroStrategy decided it didn’t want to keep much of its equity in cash, which it sees as a ‘melting ice cube’ and instead placed more than 80% of its books in Bitcoin.
Tudor Jones said live on CNBC that government monetary policy following the Covid lockdown had made him rethink his positioning.
‘Bitcoin, I think is a great speculation … I have just over 1% of my assets in bitcoin, maybe it’s almost two, that seems like the right number right now.’
‘The best profit-maximizing strategy is to own the fastest horse,’ Jones, the founder and chief executive officer of Tudor Investment Corp., said. ‘If I am forced to forecast, my bet is it will be Bitcoin.’
Should Have Invested More In Bitcoin
While admitting that a prominent Wall Street legend like Paul Tudor Jones putting 1% of his assets into Bitcoin is bullish, Michael Saylor believes if Tudor Jones really understood Bitcoin, he would have allocated more.
‘I just can’t see how you could say that you understand Bitcoin and then at the same time say you’ve decided to speculate in it or that you’re putting 1% of your wealth in it.’
‘What I would say to Paul Tudor Jones is if you really understand Bitcoin and you understand it’s the scarcest digital asset, then you know that it’s going to have a positive, real yield, 10 to 20% just based on fiat printing.’
‘And its value is going to accrete better than just the fiat printing,’ Saylor continued. ‘And once you realize that, and if you buy into the notion that the Fed is going to debase the currency 10% a year for the next decade, or at least for the next five years, then 99% of the stuff you’re holding is debasing by 10% a year.
And no doubt Tudor Jones understands the monetary policy that will drive the value of Bitcoin up, Saylor said understanding its technological characteristics makes it an obvious choice as an investment for the future.
‘If you actually dug into it to understand the technology characteristics that it’s smarter, faster and stronger than gold, you would realize that it’s probably a 100x to a 1000x better than gold, said Saylor.
Saylor Is Right But Don’t Expect Every Institution To Follow MicroStrategy
Michael Saylor’s move to hold 38,250 bitcoins in MicroStartegy’s treasury is absolutely bullish and exciting, but a public company investing so much into buying Bitcoin, probably won’t be replicated anytime soon.
MicroStrategy is a cash rich company and had over 50% of its treasury in cash, and had little debt. So their ‘melting ice cube’ might not resonate with every public company as much.
Having so much cash and little debt isn’t typical of a public company, so even though a move like this will trigger other CEOs into looking closer at Bitcoin, we should expect no more than 5% from any institution.
That is still huge amount of value, however, and no doubt as the printing presses keep going brrr, the value of Bitcoin will keep rising.
That alone will trigger other parts of the financial world to take note and positions in Bitcoin, and might even encourage Paul Tudor Jones to up his bet.
Author: Tommy Limpitlaw
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.