Bill Miller, chairman and CEO of Miller Value Partners, shares his cryptocurrency investment strategy and why he has bullish views on Bitcoin.
In an interview with FutureProof, the head of the investment company, which manages assets worth $ 3 billion, described the beginning of his journey as a believer in BTC.
“I turned to Bitcoin around 2013. It was trading at around $ 200 when you purchase it. Then it reached close to $ 1100 – $ 1200 and then Mt. Gox collapsed. [Bitcoin], on the other hand, [collapsed to] $ 200 in 2014.
I started buying it again … My average price is about $ 300 per [coin]. “
Miller claims that there are several main reasons why he entered this space so early and why he is a long-term defender of the leading cryptocurrency.
“The nature of what he was trying to do [the asset] was that there were many different ways to win. My opinion was, any of these different things – to become a currency, to become a payment system [….] – will lead to a very dramatic move in the base price. This was helped by the fact that it is limited to 21 million BTC and is decentralized. It cannot be forged … “
From an investment point of view, Miller says Bitcoin continues to offer a very favorable risk-reward ratio. He is in favor of having a small portfolio distribution of 1% to 2% in BTC. In the long run, he believes he could earn a 1000x or more return on his investment in BTC, which would put Bitcoin at a price of $ 300,000.
“I could make up to 100 times my money. I could do 1000x, maybe even more than that. I can only lose 100% … I still have it. I haven’t sold a single Bitcoin …
Back in the ’70s and early’ 80s, people were talking about 5% of their assets being in gold because it was hedging. This is an insurance policy in case inflation returns again, as in the 70s. I would say that if this is a [reasonable move], then certainly having 1 to 2% of your assets in Bitcoin is very important. “
The experienced investor also commented on the question why Bitcoin is less risky at the moment compared to the time when it was traded below $ 100.
“For most of the assets you buy, the more they become more expensive, the less value can be derived from them and the more risky it becomes. Bitcoin is in the unusual position of being the exact opposite. It was very risky when trading at $ 1, $ 5 or $ 10. He could easily have disappeared. “