Billionaire investor Paul Tudor Jones asserts that Bitcoin should be a crucial part of every investment portfolio today, especially as a hedge against inflation.

He presents a critical view of the U.S. economy, describing it as ensnared in a “debt trap,” where authorities might permit inflation to rise significantly to cope with the mounting debt.

“The current economic climate necessitates Bitcoin, along with gold and stocks,” Jones stated, highlighting potential adjustments in monetary policy.

In a recent Bloomberg TV interview, Jones speculated on forthcoming changes at the Federal Reserve, suggesting President Trump could appoint an “uber-dovish” chair to succeed Jerome Powell when his term ends next year. With this transition, Jones anticipates a landscape of increased prices and diminished purchasing power that could jeopardize traditional investment portfolios.

To shield against such a scenario, he reiterates that every portfolio should balance Bitcoin, gold, and stocks, adapting the allocation to mitigate Bitcoin’s inherent volatility.

“Consider a combination of Bitcoin, gold, and stocks based on their risk-adjusted returns,” Jones mentioned, underscoring the need for strategic investment approaches in combating inflation.

Jones manages Tudor Investment Corp, a macro hedge fund valued at around $16 billion. He has a history of advocating for Bitcoin as a pivotal asset for inflation protection, though he refrained from specifying exact allocation percentages during this latest discussion, reaffirming his strong belief in Bitcoin’s significance amidst current inflation metrics, which recorded a rise of 2.4% recently.