Investor Bill Miller, founder of the management company Miller Value Partners, was the most recent to talk about Bitcoin. He quoted the cryptocurrency in a letter sent to his investors on Tuesday (5).
In the document, Miller said that markets are underestimating the risk of global inflation. And for him, BTC can serve as a protection against this risk. He also cited the cases of companies that invested their cash in Bitcoin: MassMutual and MicroStrategy (NASDAQ: MSTR).
And he said that the cryptocurrency could see a "torrent" of new investments. "If inflation increases, or even if it does not, and more companies decide to diversify a small portion of their cash into BTC instead of cash, then the current flow of investment in Bitcoin would become a torrent," said Miller. Bill Miller is not just any investor. Miller Value Partners has been in the market for 20 years. The manager's main fund hit the appreciation of the S&P 500 for the second consecutive year.
Rat poison - against money In addition to speaking well of Bitcoin, Miller took advantage of the letter to pin one of the biggest critics of cryptocurrency: Warren Buffett. For that, he used a classic phrase from the Oracle of Omaha.
“Warren Buffett called Bitcoin‘ rat poison ’. He may be right.
Bitcoin can be rat poison, and the rat can be fiat currency, ”noted Miller. The phrase was actually spoken by Buffett's partner Charlie Munger. In 2018, Munger classified Bitcoin as a “useless artificial gold, a rat poison”. Buffet later endorsed the claim, calling it “squared rat poison” and as a gambling instrument. However, several publicly traded companies diversified their investments in Bitcoin during 2020. In addition, several managers created investment funds focused on cryptocurrency
“Bitcoin has appreciated more than 50% since mid-December. It has outperformed all major asset classes over the past 1, 3, 5 and 10 years. Its market value is greater than JP Morgan and greater than Berkshire Hathaway, ”said Miller.
