Bitcoin gained one of its biggest backers ever, billionaire investor Paul Tudor Jones.
Jones said in a market outlook note that the best profit-maximizing strategy is to "own the fastest horse," according to Bloomberg. Inflation from the central bank's money printing presses running overtime dictates the "horse" is bitcoin.
True to his word, the Tudor BVI fund's exposure to bitcoin could account for as much as a low-single-digit percent of total assets, according to Bloomberg. This would imply Tudor is the first major fund manager to embrace the digital currency after years of being overlooked by the industry.
Why It's Important
Jones was exploring the usefulness of gold, Treasuries, stocks, currencies, and commodities as a hedge but ultimately bet on bitcoin, according to Bloomberg. Bitcoin checks off four characteristics important to Jones: purchasing power, trustworthiness, liquidity and portability.
Perhaps more important, bitcoin reminds Jones of gold when he "first got into the business in 1976."
Jones estimates $3.9 trillion of new money has been printed since February. The math behind the estimate is equivalent to 6.6% of total global economic output.
"We are witnessing the Great Monetary Inflation -- an unprecedented expansion of every form of money unlike anything the developed world has ever seen," he said.
The price of bitcoin was trading around $9,868 at time of publication, according to Coinbase.