In a Wednesday interview with CNBC, Bill Miller once again laid out his cards on why he had fallen in love with Bitcoin, stating that the cryptocurrency was the best hedge against fiat-induced calamities.
According to the Billionaire investor, one reason for his decision to purchase and hold Bitcoin in the long term is because the asset is still in its early days. Although he holds the belief that Bitcoin has no intrinsic value, he compares the cryptocurrency to purchasing a rare price of art such as the Picasso painting and the Honus Wagner baseball card.
“It’s like an insurance policy,” Miller said, “Insurance policies have no intrinsic value. In fact, you want them to have no intrinsic value. You don’t want to have your house burned down, or get in a terrible accident, but you pay for insurance every year in case that happens,” he added.
He went on to say, “Bitcoin is insurance against financial catastrophe as we see in Lebanon, or in Afghanistan, or many of these other countries where we saw (that) around the time of the pandemic.”
His “insurance” sentiment has also been held by various crypto proponents including Michael Saylor and Billionaire Michael Novogratz who have held that Bitcoin could be the answer to financial woes currently faced by countries such as Turkey and Afghanistan.
Miller, who has often referred to Bitcoin as digital gold also noted that he still holds a huge quantity of the rare asset. He however cleared the air around an interview last month stating that media outlets have misquoted him for reporting that he had invested half of his entire wealth in Bitcoin. Instead, he said that he had invested only a small percentage of his wealth into Bitcoin, which had since grown in value to equal half of his entire fortune.
He declined to reveal the actual value of the stash only stating that “It’s still a very big position…Now it’s less than that because it’s down in half since November”.
Miller who is bullish on Bitcoin, points at various fundamental catalysts, particularly KPMG Canada’s recent announcement that it had purchased Bitcoin and Ethereum, and believes institutional adoption is set to increase even further this year.
“I think you’re going to see a lot of adoption among foundations and endowments and institutions this year, and that’s going to continue,” he said.
Miller also sees an opportunity in cryptocurrencies and stocks, asserting that the FED has been clearly behind where it ought to be given realized inflation. Currently, Bitcoin is trading at $42,504, gaining roughly $20% after recovering from a three-month-long pullback.
