Veteran investor and fund manager Bill Miller says he has “a very big position” in bitcoin and expects to see a lot of institutional adoption this year, particularly among endowments and foundations. “Bitcoin is insurance against financial catastrophe,” he opined.
Bill Miller Says ‘Bitcoin Is Insurance Against Financial Catastrophe’
CNBC interviewed Bill Miller, a well-known value investor and spoke about bitcoin Wednesday. Miller Value Partners was founded by him and he currently serves as the chief investment officer and chairman. He manages the firm’s Opportunity Equity and Income Strategy funds. Before Miller Value Partners, Legg Mason Capital Management was his co-founding company.
Referring to bitcoin, Miller described, “It’s like an insurance policy.” He elaborated: “Insurance policies have no intrinsic value. You want them to be free from intrinsic value. You don’t want to have your house burned down or get in a terrible accident but you pay for insurance every year in case that happens.” Miller continued:
Bitcoin can be used as insurance to avoid financial disasters such as those in Afghanistan or Lebanon.
Miller also clarified the January statements he made about bitcoin making up half his net worth. Miller pointed out that some media reported misinterpret what he meant. Miller said that bitcoin was only about a third of Miller’s networth. As the currency’s price rose, Miller realized this and made it half of his overall fortune. He said, however that BTC is now less than half his net worth due to the fact that its price has fallen from November’s high.
“I put a few percent of my net worth in it a long time ago and it grew to be half of my net worth. Now it’s less than that because it’s down half since November. But it’s still a very big position,” he said.
Miller stated that KPMG Canada bought bitcoin and other ether as part of its corporate treasury. Miller, a billionaire fund manager, said:
I think you’re going to see a lot of adoption among foundations and endowments and institutions this year, and that’s going to continue.
This veteran investor is a long-time proponent of bitcoin. In September last year, his hedge fund company told the U.S. Securities and Exchange Commission (SEC) in a filing that bitcoin has “significant upside potential” as digital gold.
He was not affected by bitcoin’s fall in price last May, and emphasized that price corrections for bitcoin are quite common.
What do you think about Bill Miller’s comments? Comment below to let us know your thoughts about Bill Miller’s comments.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is intended for general purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.