Bill Miller, a well-known investor and hedge fund manager, recently appeared on Bloomberg to convey his opinions on the current state of the cryptocurrency space, along with clarifying his personal stake in the market.
— Bloomberg TV (@BloombergTV) July 27, 2018
The American investor noted that he holds a substantial amount of Bitcoin in a partnership, along with a “pretty significant” personal stake in “digital gold” at an average buy-in cost of just $300. Taking into account that Miller’s net worth is likely in the hundreds of millions, if not billions, there is a high chance that crypto assets make up a hefty portion of his personal fortune.
Miller, despite hailing from legacy markets, has long been a proponent of the cryptocurrency industry. Over the past years, he has allocated a respectable amount of his hedge fund’s assets to the foremost cryptocurrency, with some reporting that the hedge fund may consist of 50% in Bitcoin, and 50% in traditional assets.
When asked by the Bloomberg host why he believes in cryptocurrencies, he stated:
“It is an interesting technological experiment, that we don’t know how it is going to come out. Right now, at $7,800 or wherever it is today, is much less risky than when it was at $100, for the reason that every day that it doesn’t blow up, go to zero, or get regulated out of existence, is that more money is going to flow into the ecosystem.”
Following this statement, he brought up his thoughts on the scarcity of Bitcoin, bringing attention to the fact that there are only around ~17 million coins in circulation. He then noted that there are only 25 million millionaires all around the world, and if everyone one of these individuals wanted to acquire one Bitcoin, the price of it would go up “non-linearly.”
This statement alludes to the fact that he sees that Bitcoin will only increase in the long run.
“Most Altcoins Are Worthless”
When prompted to speak if the concept of the value of scarcity applies to altcoins, Miller adamantly stated that a majority of the over 1500 altcoins are worthless, pointing out that Bitcoin is one of the most stable assets in this early-stage industry.
He also noted that the largest cryptocurrency by market capitalization has the highest chance of succeeding, while Etherum follows closely behind the so-called “digital gold” from his perspective. While this may not be the most popular opinion, maybe the investor is just sticking with what he understands and what he has analyzed.