Popular value investor Bill Miller has revealed why he is betting big on Bitcoin (BTC) in 2022. The Founder and Chief Investment Officer (CIO) of Miller Value Partners revealed this during a recent interview with Wealthtrack.
Miller who has a long history of high value investments and currently holds the record for beating S & P 500 for 15 consecutive years has explained why he is placing 50% of his $2.4 billion worth of assets on Bitcoin and some other crypto-related investments. He said:
“I’d say it’s a combination of things – it would have to be, to allow something to get that big a part of your portfolio.”
Miller’s reasons may appear to be bordering on some carefully thought out calculations however. For instance, the billionaire investor mentioned the fact that only 21 million Bitcoin can ever be created. And according to him, if there’s a limit to what amount of Bitcoin there can be created, then it doesn’t matter what the price of Bitcoin is at the moment, it will surely go up.
That means so far there can only be as many as 21 million Bitcoin in circulation, demand for the apex cryptocurrency will definitely increase as the years go by, leading its price to go up unstoppably.
While for long Bitcoin has been dubbed the “digital gold,” Miller has a preference for Bitcoin over gold. Explaining his choice, Miller simply says gold being the more conventional “store of value” asset class isn’t enough. He says:
“In 5000 years, it [gold] has gone from a nickel to $1850, and in 10 years, Bitcoin has gone from a nickel to $57,000”
He then simply asked why he or any right thinking person would own gold over Bitcoin considering the performance of both assets in the last decade.
Meanwhile, the investor is not only betting on Bitcoin for the year. According to him, he has also put some of his money into several Bitcoin-related stocks, including MicroStrategy Inc. (NASDAQ:MSTR) and Stronghold Digital Mining Inc (NASDAQ:SDIG). He also claims that another substantial portion of his personal portfolio, aside from Bitcoin-related investments, would be found in Amazon.com, Inc (NASDAQ:AMZN).
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