Legendary investor Miller: Bitcoin's decline will become a flood

Legendary investor Bill Miller, who praised Bitcoin in every interview and said the largest cryptocurrency is the best protection tool in the financial system, once again mentioned its importance. "If companies start investing a small portion of their portfolios in Bitcoin, then bitcoin's decline will become a flood," Miller said.

Author Hakan Ateşler

February 11, 2022

Legendary investor Bill Miller outperformed mutual fund S&P 500 for 15 consecutive years

"Bitcoin is rat poison. Rats are also money."

Miller, who says Bitcoin is digital gold but has more features than precious metals, gave an interesting response to Warren Buffett's famous quote:

"Bitcoin is now like digital gold, but has more positive features than it does. If inflation gets higher, or even if not, I think companies will slowly start shifting a small portion of their portfolios to Bitcoin instead of keeping cash. At that time, the water droplets flowing into Bitcoin will become a flood. Warren Buffett once referred to Bitcoin as "rat poison." I agree with him. Bitcoin can be rat poison, rats are cash. ”

Half of your wealth is Bitcoin?

The question was asked again in a CNBC interview with Miller, who wrote in an Interview in November that half of his fortune was in Bitcoin. Miller stated that there was a misunderstanding and used the following statement:

"I think there was a misunderstanding and I was told that I was investing half of my entire assets in Bitcoin. Such a situation is absolutely impossible. What actually happened was that a long time ago I invested a small fraction of my entire assets in Bitcoin. When Bitcoin appreciates, that number is equal to half of my wealth. However, this rate is also currently down due to the decline it has experienced since November..."

"I think KPMG's Bitcoin and Ethereum initiatives are very, very important"

Miller said KPMG, one of the big four accounting giants, added Bitcoin and Ethereum to its balance sheet for the first time and spoke about the importance of this, saying he believes many institutions and foundations will follow this path this year:

"When I heard that KPMG was turning to Bitcoin and Ethereum, my idea was very, very important. Because KPMG is part of many companies, MicroStrategy's balance sheet is not SEC verified. The balance sheet will be accepted in some way. I think institutions and foundations will take similar initiatives for some time to come. ”

"Yes, Bitcoin has no tangible value"

The legendary investor also mentioned that opponents of Bitcoin often have no real and tangible value, and he gave a sarcastic answer to this claim, stating:

"Bitcoin has no tangible value. Because it's actually a huge database. But databases also have value. However, this value is not seen in the material, but what architecture adds to you. So if people want it in their lives, it has value. That's one thing. It's like an insurance policy. No one wants their house to burn down. We pay for this insurance. Bitcoin also insures financial disasters... We've seen what happened in countries like Lebanon or Afghanistan during a pandemic. ”