Billionaire Bill Miller, founder and chief investment officer of investment firm Miller Value Partners, said that in times of market turmoil, Bitcoin works without the Federal Reserve and without any interference. He concluded that BTC is insurance.
Bill Miller is the billionaire founder and chief investment officer of the investment firm Miller Value Partners. The
In the latest episode of the Richer, Wiser, Happier podcast, Miller cited BTC as a means for those in conflict to continue to access financial products. As an example, he cited the collapse of the financial structure in Afghanistan following the US withdrawal in August 2021.
“When the US withdrew from Afghanistan, Western Union stopped sending remittances there or picking them up in Afghanistan, but if you had bitcoin, you were fine. Your bitcoin is there. You can send them to anyone in the world if you have a phone.”
Miller said that Bitcoin can act as insurance, noting how BTC performed in the early stages of the pandemic and the Fed’s response.
“When the Federal Reserve stepped in and started shooting and saving the money supply, essentially mortgage rates […] Bitcoin worked fine. There was no race in bitcoin. The system worked without the Fed and without any interference. Everyone got their bitcoin, the price adjusted, and then when bitcoiners realized, ‘wait, we’ll have inflation later,’ bitcoin skyrocketed.”
Miller also pointed to Warren Buffett’s recent criticism of Bitcoin, where Buffett opined that Bitcoin doesn’t produce anything and that he wouldn’t even buy all the Bitcoin in the world for $25.
“He has said that bitcoin is an unproductive asset and therefore he cannot value it. Fair enough. If the only thing you think you can value is productive assets, then no one is forcing you to buy them, right? So you ignore it.”
He then added in a comment:
“The goal of investing is not to own productive assets, the goal is to make money.”
Miller is known for managing a portfolio that outperformed the S&P500 for 15 consecutive years between 1991 and 2005. He is also known for his stance on bitcoin, switching half of his net worth to bitcoin in January.
When asked if his position still holds, Miller confirmed that about 40% to 50% of his money is in Amazon stock and his bitcoin holdings are about the same. He added that 80% of his net worth is split between these two assets.
Miller also talked about Mike Novogratz’s Luna-based tattoo.
“Someone sent me a picture of Mike Novogratz months ago with a Luna tattoo on his arm that shows the wolf howling at the moon and it’s big. It’s like, oops, maybe you should have had a bitcoin on your arm, it would be a bit more durable than this.
Novogratz has said the tattoo will be a constant reminder that venture investing requires humility. As a result, his company Galaxy Digital had recorded a loss of USD 300 million.
“I felt bad for him when I saw a story where he went from $10 billion to $2 billion.”
“I think so, that’s really tragic.”
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