Billionaire Bill Miller, founder and chief investment officer of investment firm Miller Value Partners, said he sees bitcoin as an "insurance policy against financial disaster."
On a May 24 episode of the podcast "Richer, Wiser, Happier," Miller expressed support for bitcoin as a means by which people caught in conflict can still access financial products. He cited the collapse of Afghanistan's financial infrastructure after the U.S. withdrawal in August 2021 as an example.
“When the U.S. pulled troops out of Afghanistan, Western Union stopped sending money to and from Afghanistan, but if you have bitcoin, you’re fine. Your bitcoin is there. If you have a cell phone, you can send to anyone in the world."
The example of how bitcoin works as an insurance doesn't "have to be all or nothing," Miller said, pointing to bitcoin's performance in the early stages of the pandemic and the Federal Reserve's response to it.
“When the Fed stepped in and started controlling the money supply, essentially saving mortgage rates...Bitcoin worked just fine. There wasn’t a run on Bitcoin. The system was working without the Fed and without any interference. Everyone got Your own bitcoin, the price adjusts, and then when bitcoin holders realize, 'Wait, we're going to have inflation in the future,' bitcoin explodes."
"In my view, it's an insurance policy," he added.
Miller also countered Warren Buffett's recent criticism of Bitcoin. Billionaire investor Buffett once said that "bitcoin doesn't generate anything" and that he "wouldn't" buy all the bitcoins in the world for as little as $25.
“He said Bitcoin is a non-productive asset, so he can’t value it. Makes sense. If you think the only thing you can value is a productive asset, no one will let you buy it, right Right? So, ignore it."
He then added: "The purpose of investing is not to own productive assets, but to make money."
Miller is known for managing portfolios that outperformed the S&P 500 for 15 consecutive years between 1991 and 2005. He's also known for advocating for bitcoin, which he put half of his net worth into in January.
When asked if he still owns Bitcoin, Miller confirmed that about "40%-50%" of his funds are invested in Amazon stock and that his Bitcoin holdings are "roughly the same as Amazon stock," adding that his 80% of net worth is split between these two assets.
Miller also talked about the Luna tattoo on the arm of Mike Novogratz, the founder of the crypto asset management company Galaxy Digital, after the collapse of the Terra ecosystem:
"Someone sent me a picture of Mike Novogratz who got a Luna tattoo on his arm a few months ago, a wolf howling at the moon, and it's huge. Maybe you should get it on your arm A bitcoin, will last a little longer than that."
Novogratz said the tattoo will be a "constant reminder of the need for humility in venture capital," and that Galaxy Digital lost $300 million on its Luna investment.
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