Veteran investor and fund manager Bill Miller explains why he thinks that it is currently “very bullish for bitcoin.” Miller noted that Russia has almost 50% of its reserves in currencies that are controlled by people who want to do them harm.
Bill Miller’s Crypto Outlook: “It’s very bullish for Bitcoin”
Renowned value investor Bill Miller spoke about the prospects for crypto amid a war between Russia and Ukraine in an interview with CNBC on Wednesday. He is the founder of Miller Value Partners and is currently its President and Chief Investment Officer. He manages the company’s Opportunity Equity and Income Strategy funds. Prior to Miller Value Partners, he co-founded Legg Mason Capital Management.
Following its invasion of Ukraine, a growing number of countries have imposed sanctions on Russia. This has caused the Russian ruble and stocks of Russian companies listed abroad to plummet. European Commission President Ursula von der Leyen said last week: “We will paralyze the assets of Russia’s central bank. This will freeze its transactions. And it will make it impossible for the central bank to liquidate its assets.”
Miller explained, “If you look at Russia right now, Russia has 16% of its $640 billion in dollar reserves. They have 32% in euros. So they have almost 50% of their reserves in currencies controlled by people who want to hurt them. He precised :
From Russia’s point of view, that’s not a great position to be in. They have 22% in gold and that’s the only part of their reserves which other countries can’t control.
The billionaire investor said: “So I think if you’re a country that has an unreserved currency – there are about 100 of them – you might think of saying, ‘You know what, maybe we could having something else there that other countries can’t hurt us, and that’s impervious to inflation or more manufacturing. He concluded :
So I think it’s very bullish for bitcoin particularly.
Miller then talked about other cryptocurrencies. “The rest of crypto is different,” he added. “I think bitcoin is unique, and the rest of the cryptos should be considered adventure investments because they’re all trying to solve other problems.”
The famed value investor has been a bitcoin bull for quite some time. In February, he said he had a “very big” bitcoin position and likened the crypto to digital gold in terms of a hedge against inflation. He also called BTC “insurance against financial catastrophe.”
