Both bitcoin and gold have been popular with investors looking for an alternative to US dollars. Photo: iStock

The news that American hedge-fund tycoon Paul Tudor Jones has compared investing in bitcoin to buying gold in the 1970s before it skyrocketed has generated some serious excitement in the crypto community.

Jones said holding the crypto is like “owning the fastest horse” in the impending inflationary race, saying, “If I am forced to forecast, my bet is it will be bitcoin.”

The Wall Street legend’s unexpected endorsement of bitcoin coincides with the blockchain reward halving, an event that has been followed in the past by massive price surges.

“Bitcoin reminds me of gold when I first got into the business in 1976,” he said in a letter to his clients.

Unprecedented central bank monetary policy amid the Covid-19 crisis is the chief reason Jones is investing in bitcoin. He said he was flabbergasted by what he called the ongoing “Great Monetary Inflation.” It’s an “unprecedented expansion of every form of money unlike anything the developed world has ever seen,” Jones told his clients.

Observers have stressed that Jones is investing in futures, not actual bitcoin, but his enthusiasm for the asset is still considered a highly bullish indicator, and it may particularly resonate with older investors who recognize his name and see his involvement as a strong buy signal.

Crypto tycoon Tyler Winklevoss has little doubt that Jones is ushering Wall Street investors into the crypto market. He tweeted, “One of the smartest and most successful investors of the last quarter century is now long Bitcoin. Wall Street is coming…”