Posted 5 months ago | by @devadmin
Mutual fund legendary investor Bill Miller recently told CNBC that the risks of Bitcoin going to zero are “lower than they’ve ever been before” and predicted that banks will get involved in cryptocurrency.
“The Bitcoin story is very easy, it’s supply and demand,” Miller said. “Bitcoin’s supply is growing around 2.5% a year and the demand is growing faster than that.”
Miller also warned of inflation “coming back” with the Federal Reserve “gunning the money supply” and future fiscal relief coming from Congress like the ongoing stimulus talks.
Following MicroStrategy’s purchase of $425 million in bitcoin, Square’s $50 million Bitcoin investment, and PayPal’s news it will allow crypto buying and selling on its platform, Miller said every major investment bank and high net worth firm will eventually have exposure to Bitcoin or commodities like gold. He added that Bitcoin has performed well over the past three-, five- and 10-year periods.
Miller also serves on the investment committee for the endowment of Baltimore-based Johns Hopkins University. He said that the endowment’s chief investment officer told him that “everybody is going to want to own at least some Bitcoin” because of its “asymmetric properties.”
“The endowment may never own Bitcoin,” Miller said. Yet, “for a college endowment that’s a bold statement,” he added.
Earlier this week, Doubleline Capital’s CEO, also known as the billionaire “bond king” Jeffrey Gundlach, said that Bitcoin was a “good hedge against inflation.”
Bitcoin is currently trading at [FIAT: $15,405.63] UP +4.6% according to Coingecko at the time of this report.