Bill Miller thinks that Bitcoin has held up well considering the upheavals in the crypto market.
With Bill Miller still planning to retire from investing at the end of this year, the legendary investor has sprinkled some last pieces of wisdom out there for anyone who might like to take notice of it.
In an interview with Barrons on Thursday he said that he was surprised at the performance of Bitcoin given that most of the crypto market was still correcting following the highly public collapse of Sam Bankman-Fried’s FTX empire.
Miller said that in his view it was “remarkable” that Bitcoin was still around $17,000 considering how the crypto market had imploded and how investors had “fled the space”. However, he thought that once the Fed started to pivot, “Bitcoin would do quite well”.
“I’m surprised Bitcoin isn’t at half of its current price, given the FTX implosion. People have fled the space, so the fact that it’s still hanging in there at $17,000 is pretty remarkable. But inflation is being attacked, and real rates are rising rapidly. I would expect that if and when the Federal Reserve begins to pivot [toward easier monetary policy], Bitcoin would do quite well,”
In the interview Miller was careful to differentiate Bitcoin from the rest of the cryptocurrency space. He saw the king of the cryptocurrencies as being a digital store of value along the same lines as gold, and suggested that investors might put at least 1% of their portfolio into the asset.
“First, I want to differentiate between Bitcoin, which I see as a potential store of value like digital gold, and all the other cryptocurrencies, which can be lumped together in the category of venture speculation. Most of them, like most venture investments, will fail. But I’ve never heard a good argument that you shouldn’t put at least 1% of your net worth into Bitcoin. Anybody can afford to lose 1%,”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
