- Billionaire Paul Tudor-Jones is talking about Bitcoin again.
- One of the greatest investors of all time, Tudor-Jones believes BTC is comparable to technology stocks in the 1990s.
- Unfortunately, not even the original cryptocurrency can be everything for all men.
Hedge fund billionaire Paul Tudor-Jones believes Bitcoin could take a position as the gold standard for crypto. Unfortunately, by comparing cryptocurrencies with internet stocks in the 1990s, he uncovered a fatal flaw in his argumentation.
Billionaire continues to sing the praises of Bitcoin
Bitcoin is by far the most famous cryptocurrency. It is currently on the rise to reach record highs and collect a historical interest among large institutions and billionaires. Paul Tudor-Jones is one of the most famous people in the investment world put part of his fortune in BTC and may be partially responsible for Wall Street’s interest.
In a recent interview, Tudor-Jones told Yahoo Finance that Bitcoin will be comparable to a precious metal, while other coins may look more like the industrial metals used in everyday life.
Oddly enough, in the same breath, the billionaire also believes that digital currencies reminded him of many internet stocks in the 90s because of their enormous potential and uncertainty.
If we look at the history books, we see that the world of technical innovation has nothing to do with the metals market.
Being first means little in the world of innovation
If I told you that Microsoft didn’t the 1999 Wall Street Journal’s list of the Top 10 Tech Stocks of the 1990s You might be surprised. You might be more surprised The more mundane Dell technologies might have been a more attractive investment for many people. One is now worth more than $ 1 trillion and the other is only $ 50 billion. It’s not hard to guess that MSFT is the former and Dell is the latter.
If you look further back, think about it the Computing-Tabulating-Recording Company (CTR) from 1911. Ultimately, this would become “Big Blue”, also known as IBM. Today they were hardly worth a tenth of Amazon, Microsoft, Alphabet or Apple, because they were early, did not give them an innovative edge. It may actually have worked against them when others took advantage of the advances they had made against them.
This is why Paul Tudor-Jones and others on Wall Street have to choose what they want from Bitcoin. It’s either like gold, which hasn’t changed in thousands of years, or an early tech stock that could be hit by a breakthrough at any time.
Unfortunately, this is the real problem with valuing cryptocurrencies. Bitcoin bulls would make you believe that it is both the Alpha and the Omega. The first and only store of value and thus the last advance required to solve the Fiat problem.
Tudor-Jones has to choose a side
Because of this, Paul Tudor-Jones must clarify the story in his own mind. If cryptocurrencies are comparable to the internet in the 1990s, BTC’s position as the front runner is far more shaky than itss dominant market capitalization suggests. The fact is that cryptocurrencies are a product of technology and are therefore constantly evolving. You cannot have a gold standard because evolution is constant and affects the ebb and flow.
If Bitcoin is the crypto to end all cryptocurrencies, it was the first time that the ultimate form of a technology came first.