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Smartest And Brightest Minds Are Going Into Crypto Says Paul Tudor Jones

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Paul Tudor Jones is positive about cryptocurrency because of the high caliber of talent pouring into the area.

On CNBC Squawk Box on Tuesday, the billionaire investor outlined why he feels the digital assets business is prepared to flourish, citing the people the space is drawing. “If you look at the smartest and brightest minds that are coming out of colleges today, so many of them are going into crypto. So many of them are going into the Internet 3.0,” he said. “It’s hard not to want to belong to crypto because of the intellectual capital.” 

Jones also stated that when it comes to crypto and Web3, he sees a “generational difference” between older people and digital natives, implying that those who are more tech-savvy are more likely to succeed in the crypto realm.“You and I are both probably on the other side of it… I think we’re both scrambling as fast as we can to understand it,” he told Squawk Box‘s Joe Kernen. 

Jones also believes that government and central bank resistance to crypto is “the number one factor holding it back,” noting that centralized authorities are likely opposed to digital assets since they allow for the borderless exchange of value, undermining the power of state-controlled money.

Jones stated that the borderless aspects of cryptocurrency are “extremely appealing” and maintained that he had a “small allocation” that could alter in the future. He also mentioned the Federal Reserve’s plans to battle inflation, claiming that cryptocurrency might have a “bright future” based on the Fed’s next moves (the U.S. central bank is due to hike interest rates to combat inflation throughout this year). “We could easily be at 2.5% rates in September… the cost of owning crypto, gold, and other inflation hedges will be more significant; it’ll be interesting to see if that’s enough to quell inflation,” he said. 

Jones has previously stated that he owns Bitcoin, but he is most recognised for his work in the traditional financial markets. He is best known for correctly predicting the 1987 Black Monday stock market catastrophe, and his accurate market calls have earned him a net worth of $7 billion. During the initial wave of Coronavirus in May 2020, he was also one of the first Wall Street veterans to openly acknowledge Bitcoin’s potential, citing its ability to operate as an inflationary hedge amid the Fed’s extraordinary money printing in reaction to the crisis.