Though Bill Miller of Legg Mason have lost 20 percent of his investment in Bitcoin, he’s still bullish on its potential and says that billionaire and venture capitalist Warren Buffett’s description of Bitcoin as a “mirage” last month on “Squawk Box,” is incorrect. However, he believes that Buffett was right about Bitcoin’s potential as a means of money transfers or payments.
At the same time Bill Miller cleared that Warren Buffett had a “logical flaw in his thinking” about Bitcoin. ForexMinute had earlier reported that Mr. Buffett had written off Bitcoin and called it a passing fad. However, it is well known that he often rejects tech companies’ shares.
The extent of bullishness on Bitcoin from Mr. Miller can be understood from the fact that he bought the cryptocurrency after its biggest exchange, Mt.Gox, collapsed earlier this year. Currently, he is chairman and chief investment officer at Legg Mason Capital Management.
Bill Miller’s Bullishness Comes from His Experience
Being a top notch investment consultant and investor, he means what he says. His statement that Bitcoin makes sense when investors look at its risks versus rewards tells volumes about the potential the digital currency has. He believes that the payoffs would be huge if the digital currency can obtain a small fraction of gold’s market share.
Bitcoin hit new heights earlier the last year in November when it peaked at $1200; it saw a steep decline later on and now trading at $400. However, there cannot be any question about its potential as a payment method. Mr. Miller says that it is a matter of time when Bitcoin will become a popular and excellent option for payment.
Bill Miller said that though gold is so popular, today none can buy anything with it in the United States; however, if Bitcoin becomes only 10 percent as popular as gold, then it’s an $800 billion market value. Here an investor can lose 100 percent of his money, or he can make 120 times his money. He admitted that he thinks the risk reward is OK.
He criticized those who compare Bitcoin to checks or money orders as according to him these people don’t seem to take into account the hard limit of 21 million Bitcoins that its inventors have placed on its global supply. He candidly said that if there were 21 million checks in the world and that’s all there were, checks would be extremely valuable.
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