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Bill Miller said that if the price rises, the risk of Bitcoin decreases



Value investor Bill Miller said on Friday that he believes that owning Bitcoin will become a safer investment decision for the higher the price of digital coins.

On Friday afternoon, Bitcoin’s transaction price exceeded $40,000 per coin, and earlier in the day it reached a record high of nearly $42,000. Since March, this cryptocurrency has been in tears, which coincides with governments around the world taking massive stimulus measures to offset the impact of the coronavirus pandemic.

Miller said on the “Stock Exchange”

;: “The greater the risk, the smaller the risk” because it is still in the early stages of the adoption cycle. “This is the opposite of most stocks.”

Miller added: “The total supply of Bitcoin grows by less than 2% per year. It is obvious from the price that the increase in demand far exceeds demand., is the founder and chief investment officer of Miller Value Partners.

Miller managed a fund that exceeded the S&P 500 index for 15 consecutive years during Legg Mason. He said he did not have a specific price target for Bitcoin, but he had “price expectations”.

“I think Bitcoin…in the next 12 to 18 months should be 50% to 100% higher than it is now. If you want to ask me about the rise or fall, I would definitely say that it is higher than lower,” he said.

Volatility is the norm

Bitcoin has undergone major adjustments in the past, and Miller warned investors that even with the support of more institutional investors, the volatility of cryptocurrencies may not disappear anytime soon. He said: “I think if you can’t accept it, you probably shouldn’t own Bitcoin.”

Miller added: “Bitcoin tends to advance by leaps and bounds, and then there will often be corrections.” “I think three corrections have been made and the correction rate is 80%, which is very normal in this very, very early technology. , It has a very large potential market.”

The price of Bitcoin has experienced strong increases, especially during the fall and new year. Since September 1, the value of digital coins has risen by approximately 230%.

Institutional investors are increasingly adopting Bitcoin, which is believed to help promote the rise of Bitcoin. For example, Paul Tudor Jones and Stanley Druckenmiller etc. promoted Bitcoin as a powerful hedge against inflation. Rick Rieder of BlackRock declared in November that it was a potential substitute for gold.

As far as Miller is concerned, he has owned cryptocurrency for many years.

Miller told CNBC in January 2018 that he started buying Bitcoin at an average price of $350 per coin around 2014 or 2015. At the time, he said he had transferred his Bitcoin holdings to another fund. On Friday, Miller stated that this is still the case, but he explained that he wants to modify the rules to make it easier to own his main fund.

He said: “Our partner Samantha McLemore (Samantha McLemore) recently formed a partnership. We own Bitcoin and its name is about 5%.” “We don’t own it because of this It is very, very difficult to do. We are now studying its regulatory aspects and are considering allowing the SEC to approve us to do this in our fund.”


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