With Russia and Ukraine taking up all the spots in the news, many are wondering what will happen with bitcoin and the world of crypto. Several altcoins and digital currencies have dropped once again now that the fighting between the two countries has allegedly intensified, and many are wondering if the world’s number one digital currency can be used as a form of financial protection. Bill Miller – a legendary investor – is still very bullish on BTC despite its recent fall below $40K in the last few days, and he thinks many countries will begin to use bitcoin as a means of working around countries that seek to do them “harm.”
Bill Miller Still Thinks Bitcoin’s Got Style
In an interview, Miller comments:
[Russia has] almost 50 percent of its reserves in currencies that are controlled by people who want to do them harm… They have 22 percent in gold. That is the only part of their reserve that other countries can’t control.
Miller continued his conversation with:
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 those other countries cannot harm us with and is impervious to inflation or to being manufactured in greater quantities.’
Ursula von der Leyen, the European Commission president, says both the EU and the U.S. have imposed heavy sanctions on Russia lately as a means of stopping the country from engaging in further aggression towards its neighbors. She said:
We will paralyze the assets of Russia’s central bank [and] make it impossible for the central bank to liquidate its assets.
Nigel Kusher – chief executive of law firm W Legal – said:
No bank in the world, other than a Russian bank, will touch you once you’re on the sanctions list, so where else could you put your money?
Miller commented that he felt bitcoin was something of an insurance policy and that countries could potentially use it to fight their way out of financial crises. Countries like Afghanistan, for example, have been hit with heavy financial disasters in recent months, which have ultimately destroyed their national currencies. He is confident Afghanistan could use bitcoin to put itself back on the monetary ladder.
Will Other Nations Buy BTC?
Chris Kuiper and Jack Neureuter – analysts with Fidelity Investments – mentioned in a recent report that El Salvador was the first country to add bitcoin to its balance sheet last year and make the currency legal tender. They are confident other nations will follow in its footsteps. They stated:
There is very high stakes game theory at play here, whereby if bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers.