Bitcoin is an Insurance Policy Against Financial Disaster: Bill Miller

In spite of the market decline in 2022, Bill Miller, a legendary value investor, remains bullish on two of his favorite investments, Amazon and Bitcoin.

The former chief of Legg Mason, John Legg Mason, called cryptocurrency “misunderstood” and described Bitcoin as “insurance against financial disaster.”

Remaining Patient

Miller spoke out about the market with Marvin McIntyre, Morgan Stanley’s Private Wealth Management managing Director – at Thursday’s Forbes/SHOOK Top advisor Summit.

The investor admitted that companies that have been performing well over the past decade are now being beaten down by a Federal Reserve that is hawkish. He also stated that this presents a great opportunity for investors to purchase more shares of companies at a discount.

Miller stated that if your time horizon exceeds one year, then you should be able to do well in the market.

Miller’s fifteen-year streak of beating the stock market from 1991 to 2005 was well-known during his time at Legg Mason. Miller is also well-known for purchasing Amazon stock during its 1997 IPO.

Miller disclosed that Amazon accounted for about half of his net worth in an interview last year. He said that the remaining 50% was in Bitcoin.

The former chairman of Bitcoin called it “an insurance policy against financial catastrophe”, with “limited fallout” during difficult market periods, since it is “not connected to other financial systems.”

Bitcoin fell 70% from its November all-time high, but did relatively well in Q3 against other financial assets. It briefly fell to $18,000 due to slightly disappointing CPI numbers, but it has since rebounded to $19,000 Miller stated that Bitcoin will continue to outperform if the Fed tightens.

He supported his argument with quotes by John Templeton and Warren Buffett:

He said that “Be greedy even when others fear you” and “The best time to buy is when maximum pessimism occurs.” “The two most powerful warriors in the world are patience and time.”

Miller’s Bitcoin Thesis

Miller’s faith in Bitcoin showed resilience in May when the whole crypto market crashed following Terra’s collapse. He did admit that he had to sell some of his Bitcoin to pay margin calls at the time.

Miller has often highlighted Bitcoin’s potential to be a global reserve asset, especially since Russian sanctions were in place and the Ruble began to fall in March. Miller claimed that altcoins don’t share this property and are more like “venture investments”.

Miller recommended Silvergate Capital, a bank that is regulated by Fed and includes a cryptocurrency exchange, as an attractive investment. Silvergate Capital was also responsible for Microstrategy’s $205 million Bitcoin collateralized loans.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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