Bill Miller and founder of investment firm Miller Value Partners Bill Miller says he sees Bitcoin (BTC) as “insurance against financial disaster.”
On a May 24 episode of the Richer, Wiser, Happier podcast, Miller spoke positively about cryptocurrency. He believes that with this, those caught up in a conflict would still have access to financial products. As an example, he cited the collapse of the financial infrastructure in Afghanistan after the United States left in August 2021.
“When the US withdrew from Afghanistan, Western Union stopped sending transfers there or accepting transfers from Afghanistan, but if you had bitcoin, you had no problem. Your bitcoins are there. You can send them anywhere in the world if you have a cell phone. telephone.”
Miller said the examples of where cryptocurrencies can act as insurance don’t have to be “all or nothing.” He referred to the development of Bitcoin in the early days of the pandemic and the response of the US Federal Reserve:
“When the Fed stepped in and increased the money supply, essentially supporting mortgage rates, bitcoin did well. There was no rush for bitcoin. The system worked without the Fed and without any interference. Everybody got bitcoin, of course adapted, and when Bitcoiners realized, ‘wait, there’s going to be inflation soon,’ bitcoin skyrocketed.”
“I see it as a kind of insurance,” he explained.
Miller also pushed back on Warren Buffett’s recent criticism of Bitcoin. Buffett has said that bitcoin “produces nothing” and that he would not buy all the bitcoins in the world even for $25:
“He said that bitcoin is a non-earning asset and therefore has no value to it. Of course, that is an argument. If earning assets are the only thing you think is valuable, then no one is forcing you to buy them, right? So just ignore it.”
He further commented: “The objective of investing is not to own productive assets, but to make money.”
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Miller is famous for his portfolio, which outperformed the S&P 500 index for 15 consecutive years between 1991 and 2005. Also known as a supporter of Bitcoin, he invested half his net worth in the asset in January.
When asked if he still holds that position, Miller confirmed that 40 to 50 percent of his money is in Amazon stock and that his bitcoin holdings are “approximately Amazon’s.” He added that he divided 80 percent of a net worth between those two assets.
Miller also spoke about the Terra (LUNA) tattoo of Mike Novogratz, the founder of crypto asset manager Galaxy Digital, after the collapse of the Terra ecosystem:
“Someone sent me a picture of Mike Novogratz months ago getting LUNA tattooed on his arm with the wolf howling at the moon and it’s big. Maybe you should have gotten Bitcoin tattooed on your arm, that would have been a bit more permanent than that.
Novogratz said the tattoo is a “constant reminder that when it comes to venture investing, keep your feet on the ground,” as Galaxy Digital reported a $300 million loss on its LUNA investments.
“I felt sorry for him when I saw him go from $10 billion to $2 billion,” Miller said. “It’s really tragic.”
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