Bill Miller – a value investor – is one of just many people who appear to have changed their tune on bitcoin. It used to be that bitcoin was an extremely worrisome, potentially even dangerous asset to invest in given how volatile it was. It used to be that bitcoin was a currency that was widely vulnerable to outside market influence and that could easily be manipulated.

Bill Miller on Bitcoin – When It Gets Bigger, the Risk Goes Down

However, Miller has said that every time bitcoin strives for a larger price, some of that risk dissipates. He says that so long as bitcoin continues to move up the financial ladder, it becomes less and less dangerous for everyday traders.

In a recent interview, he commented:

It gets less risk the higher it goes. That’s the opposite of what happens with most stocks. Bitcoin’s total supply is growing less than two percent a year, and it’s obvious by the price that the demand is growing much, much faster than that. So long as that obtains, bitcoin is likely to go higher and perhaps considerably higher.

At the time of writing, bitcoin is trading beyond $40,000 for the second time this month. It looks as if the bullish trends the asset has been enjoying over the past half year are going to continue, which means even less risk will be associated with the currency granted Miller’s words are correct.

As the founder and chief executive of Miller Value Partners, he further explained that while he cannot predict exactly where BTC will be in the coming weeks or months, he has ideas about where it could go and how high it could get. He explained:

I think that bitcoin… should probably be up 50 percent to 100 percent from here in the next 12 to 18 months, and if you were to ask me the over or under, I would certainly say it would be much more likely to be higher than lower.

Remain Aware of Volatility

However, he did further state that while bitcoin has been rather solid as of late, volatility is not a thing of the past, and investors need to stay cautious as this is still very much a valid threat that could bring down bitcoin – or any form of crypto – at any moment. He mentioned:

I think if you can’t take that, you probably should not own bitcoin. The asset tends to move in spurts, which tend to be followed by corrections. I think there have been three corrections of 80 percent, which is normal in this type of rather early technology with a rather big total addressable market.

Miller has owned bitcoin for years, initially claiming in a 2018 interview with CNBC that he had begun purchasing units roughly three or four years earlier. Since early September, bitcoin has added about 230 percent to its price.

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