Bill Miller, the founder, and CIO of Wall Street hedge fund Miller Value Partners believes that bitcoin, a lynchpin carrying the entire crypto industry on its shoulders, is the safest investment as far as cryptocurrencies are concerned. The billionaire investor also drew numerous similarities between BTC and gold, even saying that central banks could “begin to think of it as another potential asset just like they hold gold.“
Speaking to Bloomberg, the Wall Street veteran suggested that time is an ally for bitcoin as, “Every day that it doesn’t blow up or get regulated to zero, what’s going to happen is that more money flows into the ecosystem.“ He also called the flagship digital currency an “interesting technological experience” but reaffirmed his belief that nobody in the market knows how BTC will end up.
The investor holds a sizeable portion of his own money in bitcoin, claiming to have bought it in 2014 for around $300 per coin. Miller shed some more light on his crypto investment, claiming that, “I put about 1% of my liquid net worth into Bitcoin. It’s very rare that you could buy something with 1% of your assets and that it could become 10 or 20 or 50% in a few years.”
According to him, the fact that BTC is worth around $8200 at press time is good news for the crypto community as “it’s much less risky than it was when it was worth $100.” He went on to liken bitcoin with gold once again, saying that, “At this point, the best way to think about Bitcoin is as a non-correlated asset most similar to gold, except it’s much more easily transportable than gold, it can actually be used to buy things.“
However, even though Mr. Miller is bullish on bitcoin, other digital assets do not seem like a feasible investment to him. When asked on altcoins he said that “Most of them are probably worthless. Bitcoin is the most stable of the currencies. I think it has the greatest probability of being successful. There are others that people like, but that’s the only one I’m interested in.“
He confirmed his belief that bitcoin is digital gold stating that, “We think Bitcoin could have enormous upside if it catches on, but we acknowledge that numerous hurdles mean that it is more likely than not that the experiment fails. Still, it is important to think about how valuable Bitcoin could be if the adoption continues to grow and the currency thrives. The grandest dream for Bitcoin would be for it to achieve the store-of-value status of gold.“
Even though other billionaire crypto aficionados like Square and Twitter CEO Jack Dorsey or Apple co-founder Steve Wozniak believe that bitcoin could be a single global currency in the coming decade, Miller thinks BTC is not an efficient payment option or a viable currency yet. Earlier this month, another billionaire hedge fund manager Marc Lasry claimed that bitcoin will reach $40,000 sooner rather than later.
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