Bitcoin has been slaughtering bears for the past couple of months. Since the fall of last year, the cryptocurrency has seen a face-melting rally to hit a new lifetime high of $64,800 earlier this month. At this point, most people believe that the rapid price appreciation implies that bitcoin is a speculative bubble that will eventually burst and lead investors to financial ruin.
However, one legendary investor disagrees as he thinks the premier cryptocurrency is poised to scale to new heights.
Bitcoin Is Not In A Bubble
Many have called bitcoin the biggest bubble in human history. Frankly, who can blame them? The flagship cryptocurrency soared from $0.06 in 2010 to near $65,000 on April 14, leaving many dumbfounded.
In an interview with CNBC’s “The Exchange” on April 20, the founder and CEO of Miller Value Partners, Bill Miller, delivered a positive assessment of bitcoin by noting that it is not in a bubble. “I don’t think this is a bubble at all in Bitcoin. This is now the beginning of a mainstreaming of it,” Miller said.
Although bitcoin has since corrected to the $55,300 region after hitting a new ATH, Miller is not at all rattled by the recent downswing. According to him, the asset’s bullish demand and supply dynamics suggest that there is room for further upside.
“Supply [of bitcoin] is growing 2% a year and demand is growing faster. That’s all you really need to know, and that means it’s going higher.”
Bitcoin Is Better Than Gold
Miller further indicated that bitcoin is likely to continue experiencing sharp price fluctuations due to its notorious volatility. In fact, he says this volatility is the price that investors have to pay for the coin’s breathtaking performance.
Although there are over 2,000 cryptocurrencies in the market with some even outperforming bitcoin, the billionaire fund manager is only interested in the pioneer crypto which he sees as the next Amazon.
Miller shares the view of most experts on bitcoin being “digital gold”. While gold is a $10 trillion asset and bitcoin a $1 trillion, he opined that bitcoin is actually a better store of value than the precious metal. The veteran investor explained that the advantages of portability, divisibility and other features give bitcoin an edge over gold.
“It’s easily transportable and can be sent anywhere in the world if you have a smart phone so it’s a much better version, as a store of value, than gold.”