Miller recently referred to Bitcoin as an insurance policy against financial disasters, as it is unrelated to the rest of the financial system. He has stressed its potential as a global reserve asset, especially during the Russia-Ukraine conflict, a feature altcoins do not share.
Well-known value investor Bill Miller is still bullish about Amazon and Bitcoin (BTC) despite the 2022 market decline.
The former manager of the Legg Mason Capital Management Value Trust fund views Bitcoin as an insurance policy against financial disasters.
Bill Miller Recommends Being Patient during the Pessimistic Market
Miller shared his opinions on the market with Marvin McIntyre, the CEO of the Private Wealth Management division at Morgan Stanley.
The investor agreed that the government squeezed those companies performing well over the last decade amid the aggressions of the US Federal Reserve. He also said this provides an excellent opportunity to purchase the company’s shares at a low price.
According to Miller, those whose time horizon is longer than one year should do very well in the market.
While managing Legg Mason, Miller beat the stock market for fifteen consecutive years between 1991 and 2005. The community knows that he acquired shares of Amazon during its 1997 initial public offering.
In 2021, Miller revealed that about 50% of his net worth was in shares of Amazon while the other 50% was in Bitcoin.
Bitcoin Outperforms Other Financial Assets despite Difficult Market Times
The former manager of Legg Mason recently referred to Bitcoin as an insurance policy against financial disasters. He highlighted its limited consequences during difficult market times, as it does not relate to the rest of the financial system.
Bitcoin has dropped by 70% after its all-time high in November but has done better than most other financial assets. According to the Consumer Price Index (CPI), it briefly fell to USD 18,000 this week but has returned to USD 19,000. Miller said the pioneering cryptocurrency might continue to outperform regardless of further tight measures of the Federal Reserve continues to tighten.
The renowned investor supported his argument by quoting Warren Buffett, John Templeton, and Leo Tolstoy. He recommended being greedy amid fear sentiment, buying at times of high pessimism, and being patient.
Miller Believes that Bitcoin Is an Excellent Hedge against Inflation
Despite the decline of the overall crypto market due to the collapse of Terra (LUNA), Miller remained confident in Bitcoin. He admitted he had to sell some of his Bitcoin holdings to meet margin calls.
Miller has stressed the potential of Bitcoin as a global reserve asset, especially after seeing the consequences of the sanctions against Russia. However, he warned that altcoins did not have that feature and were venture investments instead.
Bitcoin is trading at around USD 19,109 and has accumulated a 2.5% loss over the last 24 hours. While its daily trading volume is above USD 26.73 billion, its market capitalization is about USD 366.73 billion, according to CoinGecko.
By Alexander Salazar
