Paul Tudor Jones: Bitcoin ‘best’ inflation hedge; eyes 5% allocation

On the Invest Like the Best podcast Tuesday, Paul Tudor Jones called bitcoin “unequivocally, the best inflation hedge that there is,” saying he currently holds about 1–2% of his assets in the cryptocurrency and aims to increase that stake to roughly 5%.

Jones is the founder and chief investment officer of Tudor Investment Corp. He said he began recommending bitcoin in 2020 after large fiscal and monetary interventions by the Federal Reserve and the U.S. Treasury, which he said made inflation trades likely to rise.

Explaining his preference for bitcoin over traditional hedges, Jones pointed to its fixed supply. He noted bitcoin is capped at 21 million coins and stated that fewer than 1 million remain to be mined, which he described as giving the asset “the greatest scarcity value of anything.” He contrasted that with gold, saying its supply increases each year by a few percentage points.

Jones described bitcoin as a portfolio diversifier. After initially allocating between 1% and 2% of assets to the asset, he said he considered raising the allocation to about 5% to balance exposure across asset types. He said he looks for assets that are underowned or undervalued and that a catalytic moment can create substantial upside when market complacency ends.

Jones warned of scenarios that could harm bitcoin’s value. He said a “kinetic” conflict involving cyber warfare could damage electronic systems broadly, adding, “anything that you have to deal with electronically is going down, including Bitcoin.” He also flagged advances in quantum computing as a longer-term threat, warning that future breakthroughs might enable actors to break current cryptographic protections and “hack any bank and hack anything they want.”

He framed his bitcoin position within a macro investing approach that focuses on policy errors and persistent structural imbalances as drivers of large market moves. Jones has publicly discussed bitcoin as a hedge since 2020 and reiterated his allocation goals on the podcast.