Billionaire investor and fund manager Bill Miller has recently revealed he is bullish on bitcoin, the flagship cryptocurrency, while to him most other cryptocurrencies are “probably worthless,” as BTC could be seen as an equivalent to gold.
Speaking to Bloomberg, sixty-eight-year-old Miller revealed a “big chunk” of his assets are in bitcoin. He has the cryptocurrency in a partnership he runs, as well as a “pretty significant” personal position he’s been creating over the past few years, with an average buy-in of $300.
On what bitcoin is to him and why invests so much in it, he said:
I think it’s an interesting technological experiment, that we don’t know how it’s going to come out. Right now, call it $7,800 or wherever it is today, is much less risky than when it was at $100, for the reason that every day that it doesn’t blow up and go to zero, or get regulated out of existence, more money flows into the ecosystem.
The fund manager noted that right now there are about 17 million BTC in the world, and over 25 million millionaires. If every millionaire decided to buy one bitcoin, he said, its price would go up “non-linearly.”
When asked if he’s thinking just applies to bitcoin or other cryptocurrencies, he revealed most altcoins are “probably worthless,” as bitcoin is the “most stable of the currencies.” To Miller, it’s got the “biggest probability of being successful,” with Ethereum being a close second to it.
The billionaire is notably only focused on the flagship cryptocurrency, as it’s a “non-correlated asset” that’s similar to gold, with the advantage of being easy to transport and transact. Given his line of thought, it could be adopted by central banks as a store of value and get one-third of gold’s $8 trillion market.
Moreover, it could become a viable currency – which Miller says it now isn’t – or a payment system. In an attempt to value the cryptocurrency, he revealed some of his methods would give him a number that’s higher than BTC’s current $8,200 price tag, but that it’s “all guesswork at this point.”
At the end of the interview, Miller noted that cryptocurrency investors should follow basic diversification principles and avoid putting all their eggs in one basket. Cryptocurrency investments, he argued, should be seen as a “positive expectation lottery ticket” that could yield returns of up to 50% in a few years.
The billionaire investor’s words come at a time in which it was revealed Nasdaq, the world’s second-largest stock exchange, held a secret meeting with crypto players to discuss legitimizing cryptocurrencies, and that remittance firm TransferGo added support for 5 cryptos after its CEO revealed he believes they’re here to stay.