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“If inflation increases, or even if it does not, and more companies decide to diversify a small portion of their cash balances in bitcoin instead of cash, the current relative drop in bitcoin will become an avalanche.”
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This is Bill Miller, founder of Miller Value Partners, in a letter to clients published on the firm’s website on Tuesday, confirming his strong outlook on the world’s most popular digital currency.
Miller is one of several notable Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, who have adopted bitcoin. Part of the enthusiasm comes from the increasing acceptance of digital currencies, including the announcement by PayPal Holdings Inc. PYPL,
last year that it will enable customers to buy cryptocurrency through their accounts and use cryptocurrency for payments from traders.
Opinion: Bitcoin is heading for a stock shortage – and it will continue to raise prices
Bitcoin BTCUSD,
traded at a record high of more than $ 35,000 on Wednesday after a late boom in 2020. The digital currency has risen more than 20% this week and is almost 350% higher over the past twelve months, according to FactSet.
Bitcoin’s higher levy comes as other assets considered risky, built on strong 2020 gains, with equities rising more firmly as Democrats were on the verge of turning both Georgian seats in the U.S. Senate after Tuesday s run-off elections.
The Dow Jones Industrial DJIA,
On average, more than 600 points, or 2%, rose to a high of more than 31,000, while the S&P 500 SPX,
achieved 1.4% as the technologically heavy Nasdaq Composite COMP,
behind with a profit of 0.5%.
Miller argued that bitcoin could increasingly be seen as an alternative to cash, as the Federal Reserve pursued a policy “aimed at losing cash investments in the foreseeable future.”
Miller concluded the mission with a critique of the billionaire investor – and noted the skeptic of the cryptocurrency – Warren Buffett’s description of bitcoin as ‘rat poison’.
Buffett “may be right. “Bitcoin can be rat poison, and the rat can be cash,” Miller said.