Billionaire Bill Miller allocates 50% of his investment portfolio to Bitcoin

American investor, fund manager, and philanthropist, Bill Miller, says he has invested half of his personal wealth in Bitcoin. Former President of Legg Mason Capital Management said that he bought some Bitcoin last year, when the asset price dropped to the $30,000 region.

Bitcoin

Bò Bitcoin – Bill Miller

Bitcoin makes up 50% of the portfolio

Although he previously disliked Bitcoin, Miller has now become one of the prominent advocates of this market. Over the past few years, especially after the COVID-19 pandemic began, the 72-year-old fund manager has often shown his support for the leading digital asset and crypto industry. He has also continued to speak out in favor of the market in the past interview recently with “Wealthtrack.”

When asked why Bitcoin is such a valuable investment tool, Miller argued that it is because the market is outside of government control. At the same time, its decentralized network records every transaction and is immutable. Bitcoin can also be considered an “insurance contract”, which is why citizens of many countries with closed economies or experiencing currency problems, will switch to it.

“If you own Bitcoin, the government will not be able to take it from you.”

The US investor admits he first bought Bitcoin about 7 years ago when its price hovered around $200. However, he conducted his biggest accumulation last summer, when BTC dropped from nearly $65,000 to $30,000 in a few months.

There are a lot of people using Bitcoin right now, as more and more capital is flowing into the crypto industry, Miller said. In keeping with this trend, he decided to allocate 50% of his portfolio to it.

However, he also warned about BTC volatility, saying it can be “very dangerous” for short-term investors. However, for long-term holders, this asset is the right investment tool as the market always seems to grow strongly after price drops.

Bitcoin is better than gold

Miller said Bitcoin is an asset equivalent to gold, but a better version of gold, noting that people tend to accumulate precious metals rather than fiat currencies during a financial crisis. BTC is the equivalent of gold, with the difference that “the government cannot take it from you.” He also mentioned the fact that the Roosevelt administration confiscated gold from people in the 1930s.

Besides, he gave statistics that show the strong growth of BTC in a short period of time, compared to the relatively stagnant value of gold.

“In 5,000 years, gold has gone from 1 nickel to $1,850. In 10 years, Bitcoin has gone from 1 nickel to $57,000. So why should I own gold?”

A few months ago, the legacy investor made a convincing comparison between the two asset classes. Grandfather said Bitcoin is like a sports car like a Ferrari, while gold is a classic, horse-drawn vehicle.

Buffett was wrong

Miller then countered the views of Warren Buffett, who believes that cryptocurrencies are “rat poison” with no intrinsic value. Miller argues that Bitcoin is “the only economic entity whose supply is not affected by demand.”

In the past, hardly anyone knew how the Internet could affect society, but now everyone can see its growth. Likewise, humanity has yet to realize what the value of bitcoin will be in the future.

However, there’s one thing Warren Buffett often says, which Miller finds true, that fear is contagious and spreads quickly, while confidence spreads slowly, through each person. person one. According to this principle, people seem to be overreacting to adverse events. He concluded that Bitcoin’s recent price drops can be seen as “the perfect buying opportunity.”

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Viet Cuong

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