With rising rates and inflation, crypto could have a 'bright future,' says legendary investor Paul Tudor Jones

Published Tue, May 3 20229:31 AM EDTUpdated Tue, May 3 20229:31 AM EDT

With rising rates and inflation, and potentially de-globalization, crypto's future looks more promising than ever, according to legendary investor Paul Tudor Jones . The billionaire investor and chief investment officer of Tudor Investment Corp. said he has a sliding trading position in bitcoin "that goes from fully invested to zero," adding that he's currently "modestly invested," in an interview on CNBC's " Squawk Box " Tuesday. "It's going to have a a bright future as we roll through these rate hikes at some point in time," he said. "A lot of it depends on what our central bank does, a lot of it depends on how serious we are about fighting inflation." "Clearly inflation's not accelerating, it's decelerating, but I think it's going to be much harder to tame than we think and it's going to take much longer, and it's going to be much more challenging for financial markets as a result," the investor added. Earlier in the interview, Tudor Jones noted investors are now in "uncharted territory" with the Federal Reserve expected to announce a 50-basis point increase in its benchmark rate Wednesday, and that investors should focus on capital preservation. Tudor Jones has been optimistic about bitcoin for months. Last year, he told CNBC bitcoin is a great way to protect his wealth over the long run, and later in October he called it preferred inflation hedge over gold . "In a world where it's just been deglobalized and breaking down… that ability to have the borderless internet, that ability to have a store of value outside of necessarily having your money denominated in rubles or yuan or dollars, it becomes very attractive," Tudor Jones said Tuesday. He also spoke about the opportunity for Web 3.0, or a decentralized Internet, which Ethereum has been tackling for years and which many other blockchain projects like Solana, Polygon and Cardano are now trying to build upon. "The ultimate dream of crypto, it's a borderless internet… where all of a sudden you have blockchain as the verification code to allow anyone on the internet to instantly connect, because the blockchain verifies who they are and then that opens up just huge possibilities," he said – like new economies and frictionless payment systems. "Clearly, central banks and central governments are not going to necessarily be huge fans of that, particularly when it comes to using crypto as a medium of exchange," Tudor Jones added. "That's the number one thing that's holding it back, is the fact that you're not going to get buy-in from governments because they lose the ability to control creation in the supply of money."

Paul Tudor Jones

Kevin Mazur | Getty Images

With rising rates and inflation, and potentially de-globalization, crypto's future looks more promising than ever, according to legendary investor Paul Tudor Jones.

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