Tudor Jones: “Bitcoin is, unequivocally, the best inflation hedge”

ByteFolio Issue 207;

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This issue covers Chiliz (CHZ), BNB Chain (BNB), Enjin Coin (ENJ), and PancakeSwap(CAKE).

Bitcoin’s ByteTrend Score holds a 3. It still feels better than it looks.

Bitcoin

Source: Bloomberg

Since the peak in precious metals three months ago, Bitcoin is up 45% in silver, 10% in gold, and down 10% against big tech.

Silver, Gold, Magnificent 7, and Nasdaq in Bitcoin

Source: Bloomberg

Going back to the big print of 2020, Bitcoin is 3.5x Nasdaq and gold, and 2.5x silver. Bitcoin has even beaten the Magnificent 7, which is impressive given that Bitcoin is coming out of a slump while they are riding high. The point investors seem to be forgetting is that Bitcoin has beaten everything and is poised to do so again.

Silver, Gold, Magnificent 7, and Nasdaq in Bitcoin since the 2020-Print

Source: Bloomberg

In an excellent interview with the trader, Paul Tudor Jones, he discussed holding bitcoin for the 2020 inflation trade. He said, “ Bitcoin is, unequivocally, the best inflation hedge ”, due to the limited supply. Gold, he said, increases the supply by 1% or 2% per year. He made another point on highlighting risks around quantum and so on. Still, it was a loud and clear message that, in his opinion, Bitcoin is the inflation hedge par excellence.

Looking at the global money supply, which took off in 2020, we can get a sense of Bitcoin’s sensitivity to it. It is a choppy path, but not unlike the Bitcoin price itself. Its position relative to global M2 is improving just as M2 itself is rising.

Bitcoin and the Global Money Supply

Source: Bloomberg

It feels bullish to me.

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