Investor Bill Miller Has Allocated 50% of His Portfolio to Bitcoin

American investor, fund manager and philanthropist Bill Miller stated that he had invested half of his personal wealth into bitcoin. Former Chairman of Legg Mason Capital Management said he bought “a fair amount” in bitcoin last year, when its price dropped to $30,000.

50% of his Portfolio in BTC

Miller, despite not being a supporter of bitcoin in the past has been one of its most prominent advocates. The 72-year-old fund manager supported the digital asset and cryptocurrency industry for many years, particularly since the COVID-19 pandemic. In a recent interview with “Wealthtrack,” he did it again.

Miller was asked why bitcoin is such an attractive investment tool. He said that it can’t be manipulated by the government because its decentralized network records all transactions and is immutable. Bitcoin could also be considered an “insurance policy”, which is why many citizens of countries with closed economies and monetary problems turn to it.

“If you have it the government cannot take it from you.”

According to the US investor, he bought bitcoin seven years ago at a price of around $200. However, his main bitcoin stash was built during the dramatic plunge in BTC’s price from $65,000 to $30,000 in just a few months.

Miller stated that bitcoin is now used by many more people than ever before, because there is so much money in the industry. He decided to dedicate 50% of his portfolio to bitcoin.

The investor did warn about BTC’s volatility and said it could prove to be dangerous for investors who are short-term. The asset is a good investment tool for long-term holders because it has consistently managed to override its price drops.

BTC Is Better Than Gold

Miller described bitcoin as the “better equivalent to gold“. During financial crises, people tend to look at bitcoin instead of fiat currencies. BTC is the same as gold, but the government cannot take it from you, as Roosevelt’s administration took people’s gold in the 1930s, he said.

He also highlighted BTC’s dramatic price rise in a relatively short time period compared to its stagnant value.

“In 5,000 years the price of gold has gone up from $1,850 to a nickel. BTC has grown from a nickel into a $57,000 coin in ten years. Why would I want to own gold span>

The legacy investor made an interesting comparison of the two assets a few months back. He said that bitcoin is a sports car, like Ferrari, and gold is an old-fashioned horse-and-buggy.

Buffet Is Wrong

Miller then opposed Warren Buffett who believed that the primary cryptocurrency was a “rat poison,” with no intrinsic value. He stated that bitcoin was “the only economic entity in which the demand is not affected by the supply.”

Miller stated that while back in those days, almost no one understood how the Internet would affect society, today everyone can see the potential of the network. Similar to this, the benefits of bitcoin are yet to be discovered by humanity.

Warren Buffet frequently states that fear is contagious and spreads quickly. However, Miller believes that confidence returns slowly to each person. He concluded that the recent bitcoin price drop could have been viewed as a “perfect opportunity to buy,” because people react too strongly to negative events.