Billionaire and Miller Value Partners founder Bill Miller has once again come out in support of Bitcoin. He also talked about the reasons for buying bonds from MicroStrategy.
In a Q4 2020 report to Miller Value Partners, the founder of the firm said 0.75% of its assets were invested in convertible bonds of MicroStrategy. This company has invested over $ 1 billion in bitcoin, and Miller explained his decision:
“Now we know what bitcoin is. So why would anyone invest in the first cryptocurrency? The point is that there is no other asset with the same growth potential and liquidity. Bitcoin is still a new and underdeveloped asset with a huge potential market, and it has a great, logical protocol with distributed governance. ”
The billionaire also tried to allay fears that regulators of various countries could ban bitcoin. He stressed that the asset has existed for 12 years and feels great without the intervention of regulators.
He also noted that recently, the attitude of American regulators towards Bitcoin has become much more positive, and this has allowed institutional investors to invest in the first cryptocurrency. As for the increased volatility, Miller does not see this as a problem:
“In fact, bitcoin is performing much better than just a wealth holding asset. When the volatility of BTC approaches the volatility of government bonds, then the bitcoin rate will be much higher, the capitalization will be huge, and the profit will be insignificant. I think when it comes to that, bitcoin will become more commonly used for exchange. ”
Earlier, Bill Miller said that the rise in the price of bitcoin makes it a less risky asset, and this is the opposite of the situation in the securities market.