Billionaire Paul Tudor Jones backs Bitcoin as a superior inflation hedge over gold, warning that US stocks are overvalued.
Billionaire investor Paul Tudor Jones has publicly stated that Bitcoin represents the best inflation hedge available today, surpassing even gold. The remarks were made during an interview on the Invest Like the Best podcast, published on Tuesday, April 28, 2026.
Jones grounded his position in a structural argument: “Bitcoin is unequivocally the best inflation hedge that exists, more so than gold.” The primary reason lies in Bitcoin’s programmatic scarcity. Unlike gold, whose supply increases each year through mining, Bitcoin has a fixed maximum cap on the number of coins that can ever be created, making it scarcer by design. This feature, according to Jones, makes it particularly attractive during periods of aggressive monetary and fiscal stimulus.
The investor framed Bitcoin’s potential through past market cycles. During phases of aggressive central bank intervention – such as after the pandemic crash of March 2020 – he observed that so-called “inflation trades” tend to emerge forcefully as liquidity is injected into the system. “When you saw all those interventions… you already knew that inflation trades were going to take off,” he said, adding that Bitcoin was at that moment the most compelling opportunity available.
Jones also expressed a very cautious view on US equity markets. According to the investor, current S&P 500 valuations imply negative returns over a ten-year horizon: “If you buy the S&P at current valuations, the 10-year returns [are] negative. It’s going to be really hard to make money from here.” He also flagged that a wave of upcoming IPOs – including SpaceX and artificial intelligence companies such as OpenAI and Anthropic – combined with a reduction in stock buybacks, could increase the supply of equities and weigh further on prices.
Jones placed particular emphasis on the ratio between the United States’ stock market capitalization and GDP, currently at 252%, near all-time highs. “In 1929 we were, I think at the peak, at 65% [market cap to GDP] and then in ’87 we got to 85%-90%, in 2000 to 270%,” he explained. “And now we’re at 252%, so you can only imagine. We are clearly very long equity in this country.” While stopping short of explicitly labeling the current situation a full-blown bubble, the reference to the dot-com bubble of 2000 is unmistakable.
The investor finally warned that a significant correction in equity markets would have cascading consequences for the real economy, the federal deficit, and the bond market. “10% of our tax revenues are capital gains. They go to zero,” he said. “So you can see the budget deficit explode. You see the bond market go up in smoke.” Jones concluded on a note of concern: “You can see this kind of negative self-reinforcing effect. It’s worrying.” Jones’s remarks come amid growing institutional interest in Bitcoin as a defensive asset, also reflected in the strong inflows into spot Bitcoin ETFs and Citi’s analysis showing that combining Bitcoin and gold improves portfolio performance.
