Mutual fund legend Bill Miller told CNBC Friday the risks of bitcoin going to zero are â€œlower than theyâ€™ve ever been beforeâ€ and predicted more institutional investment in the cryptocurrency.
â€œThe bitcoin story is very easy. Itâ€™s supply and demand,â€ Miller said. â€œBitcoinâ€™s supply is growing around 2.5% a year and the demand is growing faster than that.â€
When he was managing the Legg Mason Capital Management Value Trust Fund, Miller beat the S&P 500 for 15 years. Heâ€™s now the chief investment officer of Miller Value Partners. In December 2017, Miller revealed that his MVP1 hedge fund had half of its investments in bitcoin.Â
On Friday, Miller warned of inflation â€œcoming backâ€ with the Federal Reserve â€œgunning the money supplyâ€ and future fiscal relief coming from Congress.
Following MicroStrategyâ€™s purchase of $425 million in bitcoin, Squareâ€™s $50 million bitcoin investment and PayPalâ€™s support of crypto buying and selling on its platform, Miller said every major investment bank and high-net-worth firm will eventually have exposure to bitcoin or commodities like gold. He added that bitcoin has performed well over the past three-, five- and 10-year periods.Â
Miller, who serves on the investment committee for the endowment of Baltimore-based Johns Hopkins University, said the endowmentâ€™s chief investment officer told him that â€œeverybody is going to want to own at least some bitcoinâ€ because of its â€œasymmetric properties.â€Â
â€œ[The endowment] may never own bitcoin,â€ Miller said. Yet, â€œfor a college endowment thatâ€™s a bold statement,â€ he added.