Legendary investor Bill Miller recently took part in an interview in which he praised bitcoin and the growing cryptocurrency space.
Bill Miller on BTC: It’s Going to Be Big
During the interview, he commented that his recent bitcoin bet will likely play out in a way similar with how Amazon did during the dot-com crash. Amazon was one of the few companies to not only survive that time, but flourish, and he is certain bitcoin has a very long and special future ahead of it. Miller is the boss of Miller Value Partners and first purchased Amazon stock when it was only $17.
Discussing bitcoin, Miller explained:
I’m willing to go over the waterfall with this one, too… Bitcoin is a lot less risky at $43,000 than it was at $300. It’s now established, huge amounts of venture-capital money have gone into it, and all the big banks are getting involved.
While he is confident that bitcoin can do quite well, he doesn’t feel as hopeful about altcoins. He was quick to suggest that many of the world’s alternate cryptocurrencies will not survive, especially given how many new ones are created each day. He stated:
There are 10,000 various tokens and stuff floating out there. The chances of more than a handful of them being worthwhile is very, very small. Bitcoin, Ethereum, and a few others are probably going to be around for a while.
He also suggested that Coinbase was not only a stable crypto exchange, but a positive stock for digital currency fans to own. He acknowledged that the platform’s stock prices have gone up and down in recent weeks, though he says this is relatively normal for a company that’s so new to public trading.
Coinbase could be the default position for growth investors. Tesla has a $750 billion market cap in a mature industry that is never going to grow very fast, just because it hoovered up the technological change. Coinbase could easily have a $500 billion or $1 trillion market cap as a disruptive company in a rapidly growing, changing industry… If you buy Coinbase or anything else, don’t get too worried about a quarter or two, or even a year or two. If you’re going to get shaken out by how the stock trades in three months or six months or nine months, you probably shouldn’t own it.
It Can Protect People’s Wealth
Lastly, he feels that bitcoin has gone up heavily over the past year and a half primarily because people see it as a hedge tool; something that can keep their wealth steady and safe during times of economic strife. With so much money printing going on as of late, inflation is on the rise, and bitcoin presents a valid protection option. He mentions:
I think of bitcoin as digital gold. The key is the demand for this type of protection against financial catastrophe.