Veteran investor and fund manager Bill Miller explains why he thinks that it is currently “very bullish for bitcoin.” Miller noted that Russia has almost 50% of its reserves in currencies that are controlled by people who want to do them harm.
Bill Miller’s Crypto Outlook: ‘It’s Very Bullish for Bitcoin’
CNBC’s Wednesday interview featured Bill Miller, a well-known value investor who spoke out about cryptocurrency amid the war between Russia & Ukraine. Miller Value Partners is his founder and serves as its chief investment officer. He manages the firm’s Opportunity Equity and Income Strategy funds. He co-founded Legg Mason Capital Management before Miller Value Partners.
Russia was reprimanded by a number of nations after its invasion in Ukraine. Russian stocks and the Russian ruble have plummeted, as well as stock markets for Russian-listed companies. European Commission President Ursula von der Leyen said last week: “We will paralyze the assets of Russia’s central bank. It will also freeze all transactions. And it will make it impossible for the central bank to liquidate its assets.”
Miller explained: “If you look at Russia right now, Russia has 16% of their $640 billion of reserves in dollars. They are also 32% euro-based. So they have almost 50% of their reserves in currencies that are controlled by people who want to do them harm.” He elaborated:
From Russia’s point of view, that’s not a great position to be in. They have 22% in gold and that’s the only part of their reserves which other countries can’t control.
The billionaire investor opined: “So I think if you are a country out there that has a non-reserve currency — there’re about a hundred of them — you might think about saying: ‘You know what, maybe we could have something else out there that other countries cannot harm us with, and is impervious to inflation or to being manufactured in greater quantities.” He concluded:
So I think it’s very bullish for bitcoin particularly.
Miller then spoke about the other cryptocurrency options. “The rest of crypto is different,” he added. “I think bitcoin is unique, and the rest of cryptos should be considered as adventure investments because they all try to solve other problems.”
For a long time, the famous value investor was a bitcoin bear. In February, he said he had a “very big” bitcoin position and likened the crypto to digital gold in terms of a hedge against inflation. He also called BTC “insurance against financial catastrophe.”
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