Fund Manager Bill Miller Lauds BTC- Says ‘Bitcoin Could Be Rat Poison, and the Rat Could Be Cash’

Celý článek

Fund Manager and founder of Miller Value Partners, Bill Miller says holding bitcoin is better than holding cash because the digital asset is immune to the bad policies of the U.S. Federal Reserve. Writing in the 2020 Q4 Market Letter, Miller explains that some companies are already converting to bitcoin in order to avoid incurring the “guaranteed losses” of holding cash.

Bitcoin Beats Berkshire Hathaway

In his brief focus on the top crypto, the fund manager starts by noting how bitcoin “has outperformed all major asset classes” after the digital asset went “up more than 50% since the middle of December.” Miller then reminds his audience of the fact that the digital asset’s market capitalization now surpasses that of Jamie Dimon’s JP Morgan or Warren Buffet’s Berkshire Hathaway.

At the time of writing, data shows that the market capitalization for JP Morgan and Berkshire Hathaway stood at $400 billion and $540 billion respectively. On the other hand, bitcoin, which set a new all-time high for the third day in a row, now has a market capitalization of $716 billion.

The surge in bitcoin’s market capitalization means the digital asset, which Warren Buffet previously compared to rat poison, is now more valuable than Berkshire Hathaway. It is this apparent new fact that Miller uses to attack Buffet’s infamous bitcoin remark. In his counter-argument, the fund manager says:

Warren Buffett famously called bitcoin ‘rat poison.’He may well be right. Bitcoin could be rat poison, and the rat could be cash.

Growing Demand for BTC

In the meantime, to support his assertions about BTC, the fund manager points to the growing demand for bitcoin by large companies like Square Inc, Massmutual, and Microstrategy. According to Miller, these companies “have moved cash into bitcoin rather than have guaranteed losses on cash held on their balance sheet.” In addition to these companies, smaller investors have also joined the BTC acquisition craze. These investors are buying the digital asset via fintech firms like Square Inc and Paypal. According to the Miller:

Paypal and Square alone are estimated to be buying on behalf of their customers all of the 900 new bitcoins mined each day.

Miller then ends his letter by suggesting that when more “companies decide to diversify some small portion of their cash balances into bitcoin instead of cash, then the current relative trickle into bitcoin would become a torrent.”

Do you agree with Miller’s assertion that holding bitcoin is better than holding cash? Tell us what you think in the comments section below.

The post Fund Manager Bill Miller Lauds BTC- Says ‘Bitcoin Could Be Rat Poison, and the Rat Could Be Cash’ appeared first on Bitcoin News.