Paul Tudor Jones Is ‘Sticking’ with Bitcoins & Says AI Will Create ‘Productivity Boom’

Billionaire investor Paul Tudor Jones who invested in bitcoins in 2020 has said that he would always keep a portion of his portfolio in digital assets. He also talked up AI and said it would create the next “productivity boom.”

Jones’ views on bitcoin and AI are in sharp contrast to fellow billionaire Warren Buffett who compared AI to an “atom bomb” earlier this month. The “Oracle of Omaha” has an even harsher view of bitcoins and termed it “rat poison squared” in 2018.

Meanwhile, Jones sees cryptocurrencies as a hedge against inflation and compared investing in them to buying gold in the 1970s.

At that time, gold prices rose quickly due to the oil crisis and high inflation rates. Mentioning Bitcoin’s capped supply of 21 million, Jones stated, “I’ve always believed in having a small investment in it because it’s the only asset humans can’t change the supply of.”

Notably, global central banks – especially in developed markets – went into a money printing overdrive in 2020 amid the COVID-19 pandemic.

The current inflationary environment is partially due to the monetary policy excesses between 2020 and 2021.

Jones said, “So I’m sticking with it (Bitcoin), and I’m going to always stick with it as a small diversification in my portfolio.”

• Read our guide on buying Bitcoin with PayPal

While a section of the market is apprehensive about cryptocurrencies – many like Jones and fellow billionaire Stanley Druckenmiller advocate allocating a portion of portfolio to them.

Paul Tudor Jones is Invested in Bitcoins

Notably, after the crash last year, Bitcoin has rebounded and is among the best-performing assets of 2023.

Along with talking up cryptocurrencies, Jones also spoke about AI in the CNBC interview.

Jones stated, “I believe we will see a more divided market than ever in the next five to ten years, because I think the rise of large language models and artificial intelligence will lead to a productivity surge that we’ve only experienced a few times in the past 75 years.”

Multiple companies are turning to AI to enhance their productivity and Amazon has said that it would use AI to optimize its delivery mechanism.

Paul Tudor Jones on AI

Tech companies including Alphabet, Microsoft, IBM, Slack, and Meta Platforms are integrating AI into their products to make them even more attractive to users.

IBM intends to replace around 7,800 roles with AI which would help it lower costs structurally.

• Read our guide on the best AI stocks

Meanwhile, along with Buffett, his deputy Charlie Munger is also apprehensive about the AI “hype.”

Munger however sees AI making a mark in manufacturing and pointed to the increasing automation at China’s electric vehicle giant BYD – a Berkshire Hathaway portfolio company.

All said, like every major technology, AI might lead to disruption – including the elimination of several jobs. However, many, including OpenAI CEO Sam Altman believe that AI would also help create many better jobs.

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