Bill Miller believes Bitcoin is insurance against financial disaster

  • Bill Miller is a world famous investor and supporter of Amazon and Bitcoin.
  • Miller first bought shares in Amazon in 1997 when it went public.
  • He started investing in Bitcoin in 2014.

Over the past few months, the crypto-fintech sector has been going through tough times and increasing market volatility has severely affected all forms of crypto assets.

The most popular and important cryptocurrency of all is Bitcoin. In the third half of 2021, the digital currency traded at $67,549.74; in the eleventh month of 2021, the cryptocurrency started losing its price at a constant rate.

Regardless of volatility and crypto winters, globally popular investor Bill Miller is unfazed by market volatility and remains bullish on two of the most reliable stocks: Amazon and Bitcoin.

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Recently, in an interview with Forbes, Miller called cryptocurrencies “misunderstood” and called bitcoin an “insurance against financial disasters.”

On October 13, 2022, Miller offered his thoughts on the market in a conversation with Marvin Mclntyre, Managing Director of Private Wealth Management at Morgan Stanley – at the Forbes/Shook Top Advisor Summit.

On the one hand, the investor admitted that companies that have done well over the past decade are now getting crushed in the face of a emboldened Federal Reserve. On the other hand, he said it provided a good opportunity to buy more shares in the company at a lower price.

During his days with Leg Mason, Miller was popular for beating the stock market for fifteen straight years, from 1991 to 2005. He is known for personally buying back Amazon stock when it went public in 1997.

Miller pointed out, “If your time horizon is longer than a year, you should do fine in the market.”

In 2021, Miller said in an interview that nearly 50% of his net worth is associated with Amazon. He added that the remaining 50% is in bitcoin.

On October 13, 2022, the former president called Bitcoin “a financial disaster insurance policy, with “limited downside” in tough market times, as it is “unconnected to the rest of the financial system.”

According to reliable media sources, operator Mill first bought back Bitcoin in 2014 when BTC was trading around $200, then bought some more time when it reached $500. He said the mastermind didn’t get it long enough before BTC fell to $30,000 after hitting around $66,000 in April 2021.

The Investor supports his argument with wonderful lines from Warren Buffett, John Templeton and Leo Tolstoy:

“Be greedy when others are fearful,” he added, as well as “The time of maximum pessimism is the best time to buy” and “The two most powerful warriors are patience and time.”

Miller’s faith in bitcoin also showed flexibility in May when the entire crypto market sank after Terra’s failure. That said, he admitted that he was forced to sell some of his bitcoin at the time to meet the margin call.

In particular, Miller pointed to Bitcoin’s potential as a global reserve asset, especially after Russian sanctions took effect and its ruble fell in March. He proclaimed that altcoins do not share this asset and are similar to “venture capital investments”.

BTC is trading in a descending channel, creating panic among the bulls. BTC tests several times to break the $19,500 range, but the bulls do not have much strength compared to the bears.

BTC is trading below the 50 DMA and hovering near the 10 DMA. Moreover, in mid-August, the price increase reached $25,000 and did not last long. The rising wedge pattern thus formed caused the trend to reverse, pushing the price back to $20,000.

BTC is now trading in a range of $18,000 to $20,000. The price is consolidating between the range making lower highs and lower lows. Trading volume has fallen by 34% in the past 24 hours. But the price is now $19,175, down 3.20% at the time of writing.

Steve Andersen

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