Tag: bill miller

Bill Miller: Bitcoin- Still A Safe Investment Despite Market Crash

Several investors expressed their negative confidence and commented about its future development in the midst of the recent dip in Bitcoin (BTC) price. However, Bill Miller – an American investor and fund manager, remained confident in BTC.

In an interview on CNBC media outlets a few days ago, Bill Miller, the founder and CEO of Miller Value Partners investment management company, showed his support towards BTC once again and continues to have confidence in the leading cryptocurrency despite its recent plunge from $65,000.

Miller still considers Bitcoin a good investment regardless of its price fall and urges investors not to be discouraged by its recent dip as such events are somewhat normal. Furthermore, the hedge fund manager said that investors should find it more attractive that the price has declined significantly.

“If I liked something at higher prices, it is a safe bet I will like it even more at lower prices,” Miller told CNBC’s Kelly Evans in a statement.

Miller acknowledged that normally he is not keen on discussing Bitcoin’s value nor commenting on “normal fluctuations” in stock or asset prices. But currently, he has been motivated to comment on the price now that the Bitcoin market is under intense pressure and the obstacles are quite unusual.

He termed the falling price of Bitcoin in March 2020 as a “historic four-week drop” but considered the crypto’s recent decline in price as “pretty routine.”

Although Miller said that Bitcoin’s dip might lead to “extreme consequences” for the financial industry, he stated that the crypto will soon be back to its previous position, and the turbulence will settle down.

Bitcoin for Corporations

Miller remains bullish on Bitcoin, a time when some fund managers see the cryptocurrency looking “very frothy.”  

In February, Miller commented on Bitcoin’s rally when the crypto traded above $55,000, stating that he did not believe the crypto was a bubble. During that month, Miller invested 15% of its value fund “the Miller Opportunity Trust” assets into Grayscale’s Bitcoin Trust. Actually, the trust invested more than $300 million into Bitcoin through Grayscale’s Bitcoin Trust.

In a letter to investors, Miller described Bitcoin’s potential as a good investment for maximizing profits. The Miller Opportunity Trust is a good example of institutional investors that have put 10%-15% of their funds’ net worth indirectly into Bitcoin, understanding the risks and advantages associated with incorporating the crypto into their portfolios.

Bill Miller Touts Bitcoin and Coinbase Stocks as Good Investments while Issuing a Warning to Altcoins

Bill Miller, a renowned Wall Street investor and the founder and Chief Investment Officer of Mille Value Partners, continued to advocate for the rising value of Bitcoin cryptocurrency but raised his scepticism towards the majority of altcoins.

The renowned investor engaged in a recent interview with Author William Green, featured on Monday, October 11 by Business Insider media outlets.

Based on the conversation, Miller considers Bitcoin as digital gold whose demand is driven by investors seeking to hedge their assets against financial devaluation. He stated that:

“I think of Bitcoin as digital gold. The key is the demand for this particular type of protection against financial catastrophe.”

The billionaire investor stated that Bitcoin could see its value rise by 10 times if investors adopt it as a store-of-value asset, saying that would only be the beginning of the cryptocurrency realizing its potential.

Miller mentioned that Bitcoin should be more attractive today than in the previous years when investment companies and banks were still shying away from crypto. He stated that: “Bitcoin is a lot less risky at $43,000 than it was at $300. It’s now established, huge amounts of venture-capital money have gone into it, and all the big banks are getting involved.”

He, therefore, advised investors who lack a deep understanding of crypto and those who are not confident in its future to only allocate 1% of their portfolio to it.

In 2016, Miller invested 30% of his portfolio in Bitcoin at an average value of $500. He recently submitted a filing to the SEC for Miller Opportunity Trust to invest in Bitcoin via the institutional-grade $2.25 billion Grayscale Bitcoin Trust.

He also talked about his view on the potential of altcoins, stating that only a few coins of the thousands of altcoins will survive the market’s uncontrolled volatility over the coming years:

“There are 10,000 various tokens and stuff floating out there. The chances of more than a handful of them being worthwhile is very, very small. Bitcoin, Ethereum, and a few others are probably going to be around for a while.”

Miller also gave advice on holding investments like Coinbase stock, saying: “If you’re going to get shaken out by how the stock trades in three months or six months or nine months, you probably shouldn’t own it.”

He considers Coinbase as a growth investment and therefore advises investors not to be cautious over one or two years of fluctuations in the Nasdaq-listed stock Coin. He compared the market cap of Tesla motor maker giant and Coinbase, saying that the crypto exchange could reach and even surpass the former’s valuation, which stands at around $790 billion. He stated: “Coinbase could easily have a $500 billion or $1 trillion market cap as a disruptive company in a rapidly growing, changing industry.”

Bitcoin Going Mainstream

Bill Miller has long been bullish about Bitcoin and his hedge fund has been investing in the crypto for several years.

In May, the investor stated that he did not see Bitcoin as a bubble, instead, he said that the coin was firmly entering the mainstream, and the crypto’s rally at the beginning of this year was significantly different from its 2017 ascend and subsequent fall.

In November 2020, Miller predicted that banks would have exposure to Bitcoin. Since then an increasing number of major banks have begun providing or planning to provide Bitcoin investment services to customers.

Institutional adoption has been regarded as one major factor for the increase of Bitcoin’s value, with firms like Tesla purchasing the crypto using cash on its balance sheet. A good number of major banks such as Goldman Sachs, Morgan Stanley, Citibank, are taking steps to offer Bitcoin services to clients.

Image source: finance.sina.com

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