Bill Miller on His Bitcoin Bet and Doubts About the Success of Most Altcoins

The legendary investor-billionaire and founder of Miller Value Partners Bill Miller, in интервью with William Green, called Bitcoin digital gold and compared his bet on it to buying Amazon stock during the dot-com bubble crash.

According to the billionaire, he bought the tech giant’s shares at an average price of $17 more than 20 years ago. The first cryptocurrency cost him on average $500 per coin, he clarified.

In 2017, the media reported that Miller held 1% of his own funds in Bitcoin, which he had bought in 2014. That same year his hedge fund, with assets of $2.2 billion, increased the crypto share in the portfolio to 50%.

“Bitcoin is much less risky at $43,000 than at $300. It is now recognised; a huge amount of venture money has flowed in, and all the big banks are involved,” he said.

For investors who are not deeply versed in cryptocurrency, the billionaire advised allocating no more than 1% of their funds to digital assets.

Regarding altcoins, Miller noted that the chances of success for more than “10,000 existing tokens and the like” are extremely small.

“Bitcoin, Ethereum and some others will probably exist for some time,” he added.

Miller was optimistic about Coinbase’s capitalization prospects, calling its stock “a default position for growth investors.”

He stressed that Tesla’s market value had reached $750 billion in a mature industry that would not grow very quickly.

“Coinbase could easily have a market capitalization of $500 billion or $1 trillion as a breakthrough company in a fast-growing, changing industry,” he allowed.

But when buying such assets, you should not worry about their price over a year or even two, the billionaire advised.

In February 2021, the Miller Opportunity Trust, with assets of $2.25 billion announced plans to allocate 15% of its funds to Grayscale Investments’ bitcoin trust.

In August, Miller Opportunity Trust disclosed a position of $44.7 million in the Grayscale Bitcoin Trust.