27/12/2022
Billionaire Bill Miller said he still has a positive view of bitcoin and added that he is not buying assets that will have to be sold
Billionaire Bill Miller said he continues to hold bitcoin, shares of Coinbase and crypto-bank Silvergate.
"I personally own bitcoin, we also own bitcoin in some private accounts. We own shares in Coinbase Global and Silvergate Capital. Coinbase is a real company headquartered in the United States. It is transparent and dominates the crypto space. There are opportunities there. Even more interesting, but less reliable, is Silvergate Bank, which is FDIC-insured. And because it's a bank, it's subject to banking rules. A year ago, its stock was worth $155; today it's worth $17," he said.
He also noted that the collapse of FTX has not affected his attitude toward the crypto market.
"First, I want to make a distinction between bitcoin, which I view as a potential savings vehicle like digital gold, and all other cryptocurrencies that can be categorized as venture capital speculation. Most of them, like most venture capital investments, will fail. But I've never heard a strong argument that you shouldn't invest even 1% of your fortune in bitcoin. Anyone can afford to lose 1%. At a market low in 2020, it was worth $5800. Since then, roughly, the market is up 70% and bitcoin is up 190%. If anyone has a time horizon of more than a year, you should succeed in bitcoin," he added.
According to Miller, because of the FTX collapse, bitcoin should have fallen another half of its current marks, but continues to show strength and is holding in the $17,000 range.
The billionaire also suggested that when the Fed starts easing monetary policy, then the first cryptocurrency will respond with growth.
"I usually thrive on inactivity. I don't like to sell anything unless forced to do so by margin calls. I recently bought more Amazon. I bought Silvergate a week ago and expect to buy more Coinbase... Think about it: if you sell stocks at a profit, you will pay capital gains tax of over 20%. I try to buy assets that I never have to sell," he added.