Crypto is attracting the “smartest and brightest minds”: Paul Tudor Jones

Paul Tudor Jones told CNBC on Tuesday that cryptocurrency is attracting the best talent in the world today.

This includes “the smartest and brightest minds” fresh out of college who are joining Web3.

The billionaire investor also spoke about why central banks and governments are not “big fans” of cryptocurrencies.

Paul Tudor Jones, billionaire hedge fund manager and founder of Tudor Investment Corp., reiterated his optimistic view on cryptocurrencies, pointing to the massive amount of intellectual capital flowing into the sector. The investor believes that the cryptocurrency and Web3 sector is currently attracting the most smart young people and “brightest minds”, a scenario that makes it difficult to “not be a part” of cryptocurrencies. Jones made the comments during a interview with CNBC’s Squawk Box on Tuesday.

Crypto and Web3 Winning Most Talent

According to Paul Tudor Jones, the future of cryptocurrency looks bright and just look at the number of intellectuals moving into such a space. Specifically, he believes this is clear, as most of these brilliant minds are fresh out of college. “If you look at the smartest and brightest minds coming out of college today, a lot of them are getting into crypto. Many of them are moving into Internet 3.0,” he noted. On what this means in terms of future prospects for developments in the space, he opined: “It’s hard not to want to be a part of cryptocurrencies for the sake of intellectual capital, just look at the vast amount of intellectual capital that goes into that space.”

Central Banks “Aren’t Big Fans” of Cryptocurrencies

Jones’ comments also included views on blockchain and how it supports an environment that provides access to borderless transfer of value. According to him, blockchain has opened up huge possibilities, including the use of cryptocurrencies as a medium of exchange. “Clearly, central banks and governments are not going to be big fans of this,” he said. According to him, the use of cryptocurrencies means that central banks and governments must lose control over the creation and supply of money. The negative outlook of these entities is currently the main obstacle to the mass adoption of cryptocurrencies, he said. Despite the impact of central banks and governments, Jones believes that blockchain technology and cryptocurrencies have a bright future.

Bright future for cryptocurrencies, even with higher fees coming

Jones, who first revealed he owned Bitcoin in 2020, told CNBC’s Joe Kernen that his investments include a “modest allocation” to crypto. In addition, he maintains a trading position. He also shared his views on the future of cryptocurrency in general, noting an optimistic outlook even as markets roll towards higher interest rates amid tighter monetary policy from the US Federal Reserve. In his view, the market could easily be looking at rates of 2.5% in September, with the result being a jump in the cost of owning inflation hedges such as cryptocurrencies and gold. “It will be interesting to see if this is enough to contain inflation. If not, they will have another high, or if the Fed falls short, we will have another high in inflation,” he added. The Fed raised interest rates by 25 basis points in March and is expected to increase by another 50 basis points. Cryptocurrencies traded lower alongside equities for much of 2022 amid jitters over higher rates, inflation and geopolitical turmoil.