Bill Miller described his Bitcoin investment as “insurance” against a financial disaster and explained how much he invested in the leading cryptocurrency. Here are the details.
The legendary investor said that the notion that Bitcoin has no real value is correct, comparing the digital asset to high-value collectibles such as a Honus Wagner baseball card or a Picasso painting.
“It’s like an insurance policy,” for Bitcoin, the chairman and chief investment officer of Miller Value Partners told CNBC on Wednesday.
“Insurance policies have no intrinsic value. You actually want it to have no intrinsic value. You don’t want your house to burn down or have a terrible accident, but you pay insurance every year against such a situation.”
“Bitcoin is insurance against financial disaster, as in Lebanon, Afghanistan or many other countries we have seen during the pandemic.”
Other crypto advocates, such as billionaires Mike Novogratz and Charles Hoskinson, said that owning cryptocurrency could help people in Afghanistan when the country’s economy fell into a crisis after the pandemic last year. Some commentators have suggested that people who want to help Afghans can send digital assets as they will ensure that the funds do not fall under Taliban control.
Miller also said in an interview in January that his statements were misinterpreted, meaning he invested half of his personal wealth in Bitcoin and other cryptocurrencies. He revealed that he only put a few percent of his net worth in Bitcoin and later reached half his total wealth as the price rose.
“Now it’s less than that because it’s been down by half since November,” he said. “It’s still a huge position,” he added, but did not reveal any figures.