Billionaire investor Bill Miller has been one of the most vocal proponents for cryptocurrency and blockchain technology in recent times. He is a big believer that cryptocurrencies offer an insurance policy against financial catastrophe, saying: “I view it as kind of like life insurance.”
Billionaire Bill Miller calls Bitcoin “insurance” against financial catastrophe. Read more in detail here: bill miller bitcoin.
Bitcoin (BTC) is a “insurance policy against financial calamity,” according to Bill Miller, the billionaire founder and Chief Investment Officer of investment company Miller Value Partners.
On May 24, Miller appeared on an edition of the “Richer, Wiser, Happier” podcast to support cryptocurrencies as a way for folks caught up in war to still access financial goods. As an example, he cited the breakdown of Afghanistan’s banking system after the US exit in August 2021.
“When the US withdrew from Afghanistan, Western Union stopped sending and receiving payments, but if you had Bitcoin, you were good.” Your Bitcoin has arrived. If you have a phone, you can transmit it to everyone in the globe.”
Miller said that instances of how cryptocurrency may be used as insurance don’t have to be “all or nothing,” citing the performance of Bitcoin during the early stages of the epidemic and the Federal Reserve’s response.
“When the Fed came in and began expanding the money supply and bailing out, in effect, mortgage rates […] Bitcoin worked perfectly.” Bitcoin did not experience a run. Without the Fed and without any meddling, the system ran well. Everyone received their Bitcoin, the price corrected, and then Bitcoin shot through the ceiling as Bitcoiners realized, ‘Wait, we’re going to have inflation down the line.’
“The way I see it, it’s an insurance policy,” he continued.
Miller also slammed Warren Buffett’s recent critique of Bitcoin, claiming that “it doesn’t generate anything” and that he “wouldn’t accept” all of the Bitcoin in the world for even $25.
“He claims that Bitcoin is a non-productive asset, hence he is unable to value it.” That’s all right. No one is forcing you to purchase it if the only thing you believe you can value is producing assets, right? As a result, disregard it.”
He then clarified his statement, saying, “The goal of investing is not to hold productive assets; the goal is to create money.”
Related: Scott Minerd predicts a decline in Bitcoin’s price to $8K, but technical analysis contradicts his prediction.
Miller is famous for managing a portfolio which for 15 consecutive years between 1991 and 2005 consistently beat the returns of the S&P 500 index. He’s also known for his advocacy of Bitcoin and put half of his net worth into the asset in January.
When questioned whether he still retained that stake, Miller said that “40 percent to 50 percent” of his money was invested in Amazon shares, and that his Bitcoin holdings were “about the same as Amazon,” with the two assets accounting for 80% of his net worth.
After the Terra ecosystem collapsed, Miller described the Luna-based tattoo on the arm of Mike Novogratz, the founder of crypto asset management business Galaxy Digital:
“Someone showed me a photo of Mike Novogratz with a large Luna tattoo on his arm from months ago showing a wolf howling at the moon. It’s like, well, maybe you should have had a Bitcoin tattooed on your arm instead of that one; it’d last a bit longer.”
As Galaxy Digital reported a $300 million loss on its Luna investments, Novogratz stated the tattoo would serve as a “continuous reminder that venture investing takes humility.”
“I felt awful for him when I read a story about him going from $10 billion to $2 billion,” Miller recalled, “and I was like, yes, that’s pretty sad.”
Bill Miller is a billionaire investor and he has recently called Bitcoin “insurance” against financial catastrophe. This statement by Bill Miller has caused many people to ask the question, “is crypto the future?”
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