Buy Bitcoin! – This is the advice Bill Miller, founder of investment firm Miller Value Partners, gives the audience in a recent interview with CNBC . Miller, who has more than 20 years of investment experience, advises buying Bitcoin. Compared to other assets, the cryptocurrency dominates in the 1-year, 5-year and even more so in the 10-year perspective.
Bitcoin is a tremendous opportunity and it should be bought now, Miller said.
Bitcoin: Every bank will buy BTC at some point
The Bitcoin roller coaster was also present this year. When the markets headed south in March under the impact 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, the recovery of Bitcoin began. The price is now trading at a level of around USD 15,000.
This is where Bill Miller starts in his CNCB interview. Of course, it admits that the volatility of the cryptocurrency was high this year. The same now also applies to stocks and other asset classes.
The recent movements of Bitcoin are a sign of stability. While a few years ago the question arose again and again whether the Bitcoin price could fall to $ 0, hardly anyone asks this question today.
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Support from Wall Street
Miller sees the support that Bitcoin received from Wall Street as a particularly strong sign. 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 the Federal Reserve Bank’s monetary policy will lead to rising inflation. Protection 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 major bank, investment bank, and company with a large market cap 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 at least small amounts of Bitcoin.
The golden law of supply and demand
At this point we may again remember the golden law of supply and demand for price determination in markets. Finally, the third Bitcoin Halving took place in May of this year .
Accordingly, the newly emerging offer of BTC was halved. Especially in times of quantitative easing, Bitcoin represents a real contrast with its supply and monetary policy. Miller therefore emphasizes 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 the demand – stimulated by large companies – is higher than the supply, a further price increase is consistent.