Bitcoin Is Not In A Bubble At All, Rather It’s “Going Higher,” says Value Investor Bill Miller
“This is now the beginning of a mainstreaming of it,” says the fund manager of Miller Value Partners, according to whom, “volatility is the price you pay for performance.”
Legendary Value investor Bill Miller says Bitcoin is firmly entering into the mainstream after PayPal’s mobile payment app Venmo announced that it now supports the buy and sell of crypto within the app.
The same day, WeWork also said it now accepts selected crypto for payments, and any received digital asset will be held on the balance sheet.
“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.”
Despite BTC rallying 1,347% since its March low, Miller believes that Bitcoin is not in a bubble; rather, it can rise even further. If history is any indication, we could be far from this cycle's top.
“I don’t think this is a bubble at all in bitcoin; I think this is now the beginning of a mainstreaming of it.”
But of course, the volatility will also continue, as we have seen this year so far, with BTC making a new ATH every month only to experience a pullback before roaring even higher.
The founder and chief investment officer at Miller Value Partners said the fact that demand for the crypto asset is growing much faster than its supply, the prices have much room to run.
“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.”
Miller first started buying Bitcoin around 2014 or 2015 at an average price of $350 per coin.
According to him, bitcoin is digital gold with a trillion-dollar crypto-asset category compared to precious metals' $10 trillion market cap.
Not only Bitcoin has a fixed supply, which is “infinitely divisible or almost so,” but it is also a “much better version” of gold as a store of value that is easily transportable and can be sent anywhere in the world if you have a smartphone, he said.