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Bitcoin is in the middle of one of its largest bull rallies ever, and according to analysts like Bill Miller, not only is the rally not yet done, but as long as bitcoin continues to gain ground in the financial world, it should become a mainstream asset in no time.
Bill Miller Is Impressed with Bitcoin
Bill Miller is the founder of Miller Value Partners. He recently stated that bitcoin has been the top-performing asset over the last ten years and is astonished that the currency has risen more than 40 percent in just the last month alone. Discussing what’s driving the price, he stated in a CNBC interview:
The bitcoin story is rather easy. It’s supply and demand. Bitcoin’s supply is growing at around 2.5 percent a year, and the demand is growing faster than that and there’s going to be a fixed number of them.
According to Miller, one of the things that’s really driving bitcoin’s price is just how popular and how necessary it has become in people’s eyes. Ever since the coronavirus began to strike our global financial markets, it appears that many people have lost faith in the dollar and other fiat currencies. Thus, they have turned their attention to alternative assets such as gold and bitcoin to hedge their wealth and keep their portfolios steady and strong.
This, he says, has really pushed bitcoin into stronger territory. It is now much more stable as people seek to get their fingers on it at a faster rate. In addition, the dollar is dropping in strength due to inflation, which is creating a chance for BTC to overtake its rivals and get closer to the top of the financial ladder.
The second thing contributing to bitcoin’s current resilience is the fact that it is rare. While we’d like to relish the idea that the final bitcoin won’t be mined until the year 2140, the truth is that there is no such thing as an unlimited supply. They will all run out eventually. They will all be mined, which means that bitcoin lacks commonality, and anything that isn’t common is likely to have more value.
Miller stated about bitcoin:
It’s been very volatile, but I think right now it’s staying power gets better every day. I think the risks of bitcoin going to zero are much lower than they’ve ever been before.
As it stands, bitcoin – which has been drawing comparisons to its 2017 run as of late – is presently up about 300 percent from where it stood at the end of 2018. That means that in roughly two years, it has more than tripled its price.
What’s Making the Asset So Strong?
I think every major bank, every major investment bank, every major high net work firm is going to eventually have some exposure to bitcoin or what’s like it, which is gold or some kind of commodity.