Legendary Investor Bill Miller: ‘Bitcoin Could be Rat Poison’ But ‘Cash is the Rat’
The Ongoing Trickle into Bitcoin Will Become a Torrent as BTC is “Very Early in Adoption Cycle”
According to veteran investor Bill Miller, Warren Buffett would be right in calling Bitcoin “rat poison” but in this case, rats could be cash.
Miller’s latest bullish comments on the digital asset came in his 4Q 2020 Market Letter which was released on Tuesday.
The renowned billionaire first announced his support for Bitcoin in November when he said “it's staying power gets better every day.”
At the time he predicted that every major bank and high net worth firm is going to eventually have some exposure to Bitcoin BTC 1.53% Bitcoin / USD BTCUSD $ 61,954.03
$947.901.53% Volume 29.08 b Change $947.90 Open $61,954.03 Circulating 18.85 m Market Cap 1.17 t 1 d UNIFY Financial Credit Union and Five Star Bank Allows Customers to Now Buy, Sell, and Hold Bitcoin 2 d Canadian Group-Retirement Savings Company Adds Bitcoin and Ethereum to its Plan 2 d Walmart is Running Pilot Program to Allow Users to Buy Bitcoin at 200 Coinstar Kiosks Across the US .
The fund manager while sharing a few thoughts on Bitcoin noted this time that the world’s largest cryptocurrency has been the best performing asset category in 2020. With its more than 50% gains since the middle of December, Bitcoin surpassed JPMorgan and Berkshire Hathaway in market capitalization, he wrote.
“It has outperformed all major asset classes over the past 1, 3, 5, and 10 years,” wrote Miller adding that “yet it is still very early in its adoption cycle.”
According to him, the policy the Fed is pursuing has an objective to have investments in cash lose money in real terms for the foreseeable future. And he thinks the market is “underestimating the risks of inflation” because as the economy becomes more normal and consumption will accelerate, so will the money velocity.
This money printing led the likes of PayPal and Square to jump on Bitcoin, both of which alone estimated to be buying on behalf of their customers all the 900 new bitcoins mined each day, reads the letter.
It further notes that not only Bitcoin beats cash, but digital gold has many advantages over the yellow metal. Miller wrote,
“If inflation picks up, or even if it doesn’t, and more companies decide to diversify some small portion of their cash balances into bitcoin instead of cash, then the current relative trickle into bitcoin would become a torrent.”