Bill Miller is Still Optimistic on Bitcoin, and More…

Bill Miller, an American Investor, was surprised at the performance of Bitcoin (BTC). And considered the recent events in the cryptocurrency market.

In an interview with Barron, published on December 22, Mr. Miller says most of the investors are staying away from the crypto market after the unexpected collapse of the second largest crypto exchange, FTX. Still, he believes that Bitcoin would do better as it opposed the current price consolidation.

It seems like Mr. Miller is sticking with the plan he announced in January to hang up his investment cleats at the end of 2022, a year in which his flagship mutual fund turned in a back-of-the-pack performance.

Miller Opportunity Trust (LGOAX) has lost 37% this year, placing it in the bottom quartile of the Mid-Cap Blend category, according to Morningstar. That’s a far cry from Miller’s performance at Legg Mason Value Trust, which bested the S&P 500 (SPX)  for 15 years in a row while he was in charge.

Furthermore, he projected Bitcoin would likely perform better in the future once the Federal Reserve slows down on its monetary policy.

Bill Miller’s Statement

Mr. Miller said, “I’m surprised Bitcoin isn’t at half of its current price, given the FTX implosion. People have fled the space, so the fact that it’s still hanging in there at $17,000 is pretty remarkable. But inflation is being attacked, and real rates are rising rapidly. I would expect that if and when the Federal Reserve begins to pivot [toward easier monetary policy], Bitcoin would do quite well.”

According to him Bitcoin should also be differentiated from the related crypto businesses stressing that the flagship digital asset has recorded significant growth in spite of the 2022 sell-off.

Mr. Miller recommended, “First, I want to differentiate between Bitcoin, which I see as a potential store of value like digital gold, and all the other cryptocurrencies, which can be lumped together in the category of venture speculation. Most of them, like most venture investments, will fail. But I’ve never heard a good argument that you shouldn’t put at least 1% of your net worth into Bitcoin. Anybody can afford to lose 1%.”

The price of most traded cryptocurrency, Bitcoin dropped from its peak value around $46.3K to its current trading price $16.8K. Notably, the decline is almost 63% in this year, as per the price sourced from CoinMarketCap.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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