Buy Bitcoin!- This is the advice Bill Miller, founder of the investment firm Miller Value Partners, gives to the listeners in a recent interview with CNBC.
Miller, who has more than 20 years of experience in the investment field, advises to buy Bitcoin. Compared to other assets, the crypto currency dominates in the 1-year, 5-year and even more so in the 10-year perspective.
Bitcoin is an enormous chance and one should use this purchase opportunity now, so Miller.
Bitcoin: Each bank will buy sometime BTC
The Bitcoin roller coaster was also present this year. When the markets set off south in March under the impression of Covid-19, the price of the digital crypto currency BTC also fell sharply. In absolute terms, we saw a price level of around $4,000.
With the slow recovery of the stock and financial markets, Bitcoin Pro also began to recover. In the meantime, the price is quoted at a level of around $15,000.
Bill Miller starts at this point in his CNCB interview. Admittedly, he admits that the volatility of the crypto currency was high this year. But the same is now also true for shares and other asset classes.
The recent movements of Bitcoin are however a sign of stability. While few years ago the question arose again and again whether the Bitcoin course could fall to 0$, today probably hardly humans place themselves this question.
Choose the best and safest exchange for you
Deciding on the right provider is not always easy. Therefore, we recommend that you take a look at our Bitcoin Broker & Exchange Comparison. Trade on the safest and best exchanges worldwide! For comparison
Support from Wall Street
Miller sees the support Bitcoin has received from Wall Street as a particularly strong signal. Wall Street sees Bitcoin as a necessary hedge in times of low interest rates and rising inflation.
Miller repeats a common narrative in this context. He believes that the monetary policy of the Federal Reserve Bank will lead to rising inflation. A hedge against this loss of purchasing power is therefore necessary. In his opinion, banks are now increasingly seeing Bitcoin as such an instrument alongside gold.
I think that every large bank, every large investment bank and every company with a high market capitalization will eventually hold a position in Bitcoin.
In short: Miller believes that all relevant players in the financial world will be confronted with Bitcoin in the future and will buy Bitcoin, at least in small parts.
The golden law of supply and demand
At this point we may once again recall the golden law of supply and demand for pricing in markets. Finally, the third Bitcoin Halving took place in May of this year.
According to this, the newly created supply of BTC was halved. Especially in times of quantitative easing, Bitcoin’s supply and monetary policy represents a real contrast. Miller therefore stresses that Bitcoin and its pricing is simply the logical result of supply and demand.
With the fixed parameter of 21 million BTC and the fact that demand – stimulated by large companies – is higher than supply, a further price increase is logical.