Wall Street Veteran Bill Miller Says Buy Bitcoin Today, as Every Major Bank Would Eventually
Miller Value Partners’ founder, Bill Miller, suggests that Bitcoin’s price today is a tremendous buying opportunity, in a conversation with CNBC. While comparing it with other assets, Miller noted that BTC has been on the lead in the last ten years, five years, and one year.
BTC May Never go Back to Zero
When COVID-19 reared its ugly head worldwide last March, Bitcoin investors became wary and insecure about the value of their digital wealth. This led to Bitcoin’s price spiraling down to $4,000 levels. Fortunately, key figures in the cryptocurrency industry constantly kept the hope alive, incrementally causing the price to shoot to over $15,280 at the time of writing.
Miller acknowledged that the leading digital currency had seen huge price swings in the past, but its current prices are part of its stability. Therefore, the risks of having its value go back to zero are “much, much lower than they’ve ever been before.”
Part of Bitcoin’s support in 2020 came from Wall Street, while the other rose from a need to hedge against projected inflation emerging from massive COVID-19-related spending. He further added:
Apart from coronavirus spending, Miller thinks inflation is bound to happen due to the Fed’s control over fiat currency. And Bitcoin could likely be able to cushion bank customers, among other stable assets like gold.
“I think every major bank, every major investment bank, every major high net worth firm is going to eventually have some exposure to bitcoin…”
It’s all About Supply and Demand
This year, Bitcoin underwent its third halving event, which is meant to reduce its supply by halving the mining rewards. This phenomenon is the antithesis of measures imposed by central banks that concentrate on adding instead of reducing supply. Miller notes that unlike fiat-related efforts, Bitcoin is all about supply and demand.
The Wall Street legend illustrated that the yearly growth of Bitcoin is at 2.5%, further adding that its demand is higher than its supply. Furthermore, Bitcoin’s supply is fixed since there is a 21 million cap on it.
Apart from Miller, other respected figures in Wall Street, like Paul Tudor Jones claim that buying Bitcoin is similar to buying Apple and Google shares during the aforementioned companies’ formative years.