Paul Tudor Jones

Hedge Fund Guru Paul Tudor Jones Wants 5% Bitcoin Allocation

Paul Tudor Jones

American billionaire and hedge fund manager Paul Tudor Jones said he wants an allocation to Bitcoin (BTC) of 5% in his portfolio. He sees Bitcoin as a great portfolio diversifier to protect his wealth over the long run against inflation. 

On the potential implication of US Fed Chairman Jerome Powell’s monetary policy, Jones said he plans to go all-in on the “inflation trades”. He would increase his exposure to gold, Bitcoin and commodities, if the Fed acts nonchalantly. 

“I like bitcoin as a portfolio diversifier… Bitcoin is math, and math has been around for thousands of years,” said the investing guru. “I like the idea of investing in something that is reliable, consistent, honest and 100% certain. So bitcoin has appealed to me because it’s a way for me to invest in certainty.”

“The only thing I know for certain, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities. At this point in time, I don’t know what I want to do with the other 80% until I see what the Fed is going to do,” said Jones.

In May last year, Jones confirmed he had invested somewhere between 1% and 2% of his assets in Bitcoin, comparing Bitcoin to gold during the 1970s.


Taproot Brings Massive Upgrades to Bitcoin

Bitcoin has climbed up to two-week high above $40,000 after Tudor Jones’ endorsement and Musk’s about-face on accepting crypto. At the time of writing (15 Jun, 10:30AM, GMT+8), Bitcoin is trading at $40,252.31, up 3.4% over the previous 24 hours. 

Meanwhile, Bitcoin is getting its first upgrade in four years. The upgrade, called Taproot, will mean greater transaction privacy and efficiency, with newly added “smart contracts” capability.

The Taproot upgrade has just been approved by miners around the world. As the first major upgrade to Bitcoin’s code since the introduction of Segregated Witness in 2017, the integration of Taproot is due to take effect in November.

Taproot has long enjoyed support among Bitcoin advocates for the privacy, security and efficiency gains afforded to the network. Also, it will unlock the potential for smart contracts, a key feature to expand Bitcoin’s utility. 

Smart contract feature has been the primary driver of innovation on the Ethereum network. With the Taproot upgrade, more programmers can build smart contracts on top of Bitcoin’s blockchain. Additionally, there is also the potential for Bitcoin to become more of a player in the DeFi world.