Famed investor Bill Miller on Thursday published a letter to investors with a fourth quarter report, in which he again defended bitcoin. Miller said that his firm Miller Value Partners acquired 0.75% of convertible bonds from MicroStrategy, which thus raised capital for investments in cryptocurrency.
“Now that we know what Bitcoin is, why would anyone want to own it? Short answer: there is no other asset that combines bitcoin’s liquidity with its upside potential. Bitcoin is still an emerging and not very common technology in the huge affordable market. It has a delightful, logically coherent distributed control protocol, ”wrote Miller.
The investor also tried to dispel the arguments of bitcoin critics, who believe that regulators will ban cryptocurrency:
“It has worked for 12 years without meaningful regulatory intervention across multiple administrations. In fact, the regulatory outlook for bitcoin in the US has never been brighter, which may explain the joining of many institutions now. ”
Responding to arguments that bitcoin is “too volatile to be a store of value or exchange,” Miller writes:
“Indeed, as we noted earlier, it performs much better than just a store of value. When Bitcoin reaches the level of government bonds in terms of volatility, its market capitalization and price will be incomparably higher and will not leave room for excess returns. One can imagine that at that time bitcoin will be used more widely as an exchange medium. ”
Earlier, Miller mentioned Warren Buffett’s expression that “Bitcoin is rat poison squared,” noting that this poison is for fiat currencies.
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