Bill Miller, founder and Chief Investment Officer of Miller Value Partners, remains bullish on Bitcoin. Miller does not think bitcoin is a bubble (anymore) and said it is at the beginning of mainstream adoption. In an interview with CNBC last week, the longtime value investor explained it is all very straightforward; Bitcoin’s price will rise as the demand for the crypto is growing faster than its supply.
When Miller was asked whether there is a lot more upside to the price of bitcoin, he emphasized the growing institutional interest in the cryptocurrency as it enters the mainstream.
“Supply 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 … I don’t think this is a bubble at all in bitcoin, I think this is now the beginning of a mainstreaming of it, “Miller said.
While commenting on the previous bull-run of 2017, Miller referred to it as a bubble back then. He further acknowledged that the price of bitcoin will be volatile as seen in the recent price swings. “Even back then during the bubble, it went down 20% on five different occasions so with bitcoin, volatility is the price you pay for performance,” Miller said.
Digital gold
Just as many investors, Miller is convinced that Bitcoin should be considered as “digital gold. “Gold is about a $10 trillion asset category and bitcoin is $1 trillion, and it’s infinitely divisible or almost so,” Miller stated. “It’s easily transportable and can be sent anywhere in the world if you have a smartphone so it’s a much better version, as a store of value than gold.”
Furthermore, the investor made it clear why he considers the top cryptocurrency to be frontrunner:
“There’s $15 trillion of negative-yielding bonds out there so why would you have that when you can own something that at least has the potential to go up.”
Bill Miller is the founder of Miller Value Partners and is currently serving as its Chairman and Chief Investment Officer.
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Source: Igaming
