Billionaire investor Bill Miller is bullish enough on Bitcoin that he now has over 50% of his investment portfolio allocated to BTC.
According to the legendary hedge fund manager, “unconfiscatable” Bitcoin is an insurance policy against inflation, chaos, or government seizures of gold and other assets. He views each Bitcoin as a share in an insurance company.
“When we pulled out of Afghanistan, Western Union stopped remittances so if you couldn’t get money and it’s still hard to get money into Afghanistan, you were in serious trouble. In Lebanon, the [pound] has completely collapsed. Venezuela is a failed state. Yet Bitcoin continues right along. That was your insurance policy against one sort or another.”
Miller believes Bitcoin is a technology in its early stages of mass adoption, much like the printing press, railroads, or automobiles once were. He says that the top crypto asset is following a “well-understood” path for the adoption of new technologies.
Miller, who beat the S&P 500 every year between 1991 and 2005 while leading Legg Mason Capital Management, says that Bitcoin is best thought of as digital gold. But unlike the yellow metal, Bitcoin won’t be affected by any government seizures.
“Right now, it’s best thought of as digital gold. Gold, as people have said a store of value for 5,000 years. And gold is what people typically fled to when the governments tried to inflate them out. In the United States, Franklin D. Roosevelt confiscated everybody’s gold in 1933. You had to turn it in or you went to jail. They can’t confiscate your BItcoin. If you hold it securely, as long as you have an internet connection you can send it somewhere instantaneously at very low costs.”
He also points out that unlike gold where the supply can be affected by the demand, Bitcoin’s hard cap supply of 21 million BTC will stay put regardless of price.
As for the other 50% of his portfolio, Miller says he has the rest of his capital in Amazon stock (AMZN).