Bill Miller, the founder and chief investment officer of Miller Value Partners, does not think bitcoin is a bubble. Instead, he said it is at the beginning of mainstream adoption. Remaining bullish on the cryptocurrency, the famed value investor explained that bitcoinâ€™s price will rise as the demand for the crypto is growing faster than its supply.
Bill Miller Bullish on Bitcoin
Longtime value investor Bill Miller is the founder of Miller Value Partners and currently serves as the chairman and chief investment officer. He is also the co-portfolio manager for Opportunity Equity and Income Strategy funds. Prior to Miller Value Partners, he co-founded Legg Mason Capital Management.
He was asked in an interview with CNBC last week whether there is a lot more upside to the price of bitcoin. Miller replied: â€œThere are many many different ways to look at bitcoin. The simplest way is just the supply and demand.â€ Emphasizing rising institutional interest in the cryptocurrency as it enters into the mainstream, he elaborated:
Comparing bitcoinâ€™s recent rally to what happened in 2017 which he said â€œwas a bubble,â€ Miller acknowledged that the price of bitcoin will be volatile as seen in the recent price swings. â€œEven back then during the bubble, it went down 20% on five different occasions so with bitcoin, volatility is the price you pay for performance,â€ the asset manager opined.
Miller shares the same belief as many bitcoin investors that the cryptocurrency is â€œdigital gold. â€œGold is about a $10 trillion asset category and bitcoin is $1 trillion, and itâ€™s infinitely divisible or almost so,â€ Miller said. â€œItâ€™s easily transportable and can be sent anywhere in the world if you have a smartphone so itâ€™s a much better version, as a store of value than gold.â€
Furthermore, he pointed out:
While Miller does not think that bitcoin is a bubble, some fund managers do. Guggenheim CIO Scott Minerd recently said bitcoin looks â€œvery frothy,â€ warning of a major correction that could push the price of the cryptocurrency down to between $20K and $30K. In addition, the Bank of America Fund Manager Survey for April shows that the majority of fund managers see bitcoin as a bubble.
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