Cryptocurrency Information Bureau News: This is the answer to inflation! Paul Tudor Jones recommends Bitcoin, gold, and stocks! #Bitcoin #Inflation prevention #Investment strategy
Video explanation
Billionaire Paul Tudor Jones talks about Bitcoin, gold and stocks as hedge against inflation!
Hello! I'm John, your blockchain guide. Have you heard the word "inflation" a lot lately when watching the news? Some of you may be thinking, "The prices of things seem to be rising," or, "My salary is the same, but my wallet is getting thinner..."
Meanwhile, the very famous investor Paul Tudor Jones said in an interview with Bloomberg (a large company that distributes economic news, etc.) that "To protect your money from inflation (rising prices), this combination is good!" Today, I would like to explain this news in an easy-to-understand way for those who are new to blockchain!
What is "inflation" anyway?
First, let's review the term "inflation."
What is inflation?inflationIt is an abbreviation for "inflation," and refers to the overall rise in the prices of goods and services in the world. For example, a piece of candy that you could buy for 100 yen yesterday might cost 110 yen the next day. If this happens to a variety of products, even if you have the same amount of money, the amount of things you can buy will decrease, right? In other words, the value of money will decrease relatively.
As inflation progresses, there is a possibility that the value of money you save will actually decrease, so it becomes important to think about how to protect your money (also called assets).
What is Paul Tudor Jones' recommended "defensive move"?
So, what kind of "portfolio" (a combination of various types of assets, often exemplified by the proverb "don't put all your eggs in one basket"!) does Paul Tudor Jones, a well-known billionaire investor, say is good for fighting inflation?
The three he listed were:
- Bitcoin
- Gold
- stock
Let's take a quick look at what each one is.
1. Bitcoin
Many of you may have heard of the word "Bitcoin"!Digital money that can be used onlineIt is a type of currency. Its most distinctive feature is that it is a new type of currency that is not managed by a specific country or bank (such as the Bank of Japan in Japan). This system is supported by a technology called "blockchain" (we'll talk about this another time!).
The total amount of Bitcoin issued is predetermined by a program. Some experts believe that it may be resistant to inflation because there is no need to worry about "printing too many and causing the value to fall." Jones' comments this time may be due to his focus on the potential of Bitcoin.
2. Gold
Gold has long been recognized around the world as something valuable. It's shiny and is used in jewelry, but that's not all. When the economy becomes unstable or there are concerns about inflation, it tends to be purchased as a "safe asset" whose value is unlikely to decrease. You may have heard the term "emergency gold." Jones also recommends including this traditional asset in your portfolio.
3. Stocks
Stocks are "shares" issued by companies to raise funds. Buying stocks is like owning a part of the company (becoming one of the owners). If the company grows and makes a profit, you can expect the value of the stock to increase and you to receive dividends (money that divides a part of the profits with shareholders).
When prices of goods rise due to inflation, corporate sales and profits can also increase. It is believed that stock prices are then more likely to rise as well, which is why it is sometimes chosen as a measure against inflation.
What does this news mean for us?
It's interesting to see an influential investor like Paul Tudor Jones say that Bitcoin can be a hedge against inflation, alongside traditional assets like gold and stocks.
This may mean that new digital assets like Bitcoin are gradually gaining acceptance in society and are being considered as an option for protecting assets.
Of course, this doesn't mean "Buy Bitcoin right away!" The important thing is,
- Be concerned with economic trends such as inflation
- Knowing the different ways to protect your money
- And if you are interested, try learning a little bit about new technologies like Bitcoin and blockchain.
I think so. Professional investors like Mr. Jones are always taking in new information and considering various possibilities.
A word from John
This news was very interesting to me. The fact that a well-known investor like Paul Tudor Jones mentioned Bitcoin alongside gold and stocks as a hedge against inflation may be evidence that crypto-assets (values of property exchanged over the Internet) such as Bitcoin are gaining presence in the wider financial world. Now that we are concerned about the state of the economy, including rising prices, it's important to keep an eye on new technologies and ideas and gather information wisely!
This article is based on the following original articles and is summarized from the author's perspective:
Paul Tudor Jones: Bitcoin, Gold, Stocks Are The Best
Portfolio To Fight Inflation