Legendary investor Bill Miller says that one catalyst is likely going to help Bitcoin (BTC) start performing well again. In a new interview with Barrons, Miller says that Bitcoin, while volatile, has a place in investment portfolios as a “sound speculation.” “At the market low of 2020, Bitcoin was $5,800. Bitcoin is now $17,400. Roughly […]
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Legendary investor Bill Miller says the upcoming Ethereum (ETH) switch to a proof-of-stake network will saddle Bitcoin (BTC) with one huge advantage over the top altcoin. In a new interview on The Investor’s Podcast Network, the billionaire investor says ETH’s switch from a proof-of-work to a proof-of-stake consensus mechanism could increase financial inequality, a problem […]
The post Billionaire Bill Miller Says Upcoming Ethereum Upgrade Will Leave Bitcoin With One Massive Advantage Over ETH appeared first on The Daily Hodl.
Miller said Bitcoin “functioned without the Fed and without any interference” during times of market turmoil, concluding that “it’s an insurance policy, the way I look at it.”
Bill Miller the billionaire founder and Chief Investment Officer of investment firm Miller Value Partners, has said he considers Bitcoin (BTC) an “insurance policy against financial catastrophe.”
Appearing on an episode of the “Richer, Wiser, Happier” podcast on May 24 Miller backed the cryptocurrency as a means for those caught in conflict to still access financial products. He used the collapse of financial infrastructure in Afghanistan after the US withdrawal in August 2021 as an example.
“When the US pulled out of Afghanistan, Western Union stopped sending remittances there or taking them from Afghanistan, but if you had Bitcoin, you were fine. Your Bitcoin is there. You can send it to anybody in the world if you have a phone.”
Miller said examples of how the crypto can function as insurance don’t “have to be all or nothing” and noted how Bitcoin performed during the early stages of the pandemic and the Federal Reserve’s reaction to it.
“When the Fed stepped in and started gunning the money supply and bailing out, in essence, the mortgage rates […] Bitcoin functioned fine. There was no run on Bitcoin. The system functioned without the Fed and without any interference. Everybody got their Bitcoin, the price adjusted, and then when the Bitcoiners realized, ‘Wait, we’re going to have inflation down the road,’ Bitcoin went through the roof.”
“It’s an insurance policy, the way I look at it,” he added.
Miller also rebuked Warren Buffett’s recent criticism of Bitcoin where the billionaire investor famously remarked that “it doesn’t produce anything” and he “wouldn’t take” all the Bitcoin in the world for even $25.
"He's said that Bitcoin is a non-productive asset and therefore he can't value it. Fair enough. If the only thing that you think you can value are productive assets, then no one's making you buy it, right? So ignore it.”
He later followed up his comment, adding “the objective of investing is not to own productive assets, the objective is to make money”.
Related: Scott Minerd says Bitcoin price will drop to $8K, but technical analysis says otherwise
Miller is famous for managing a portfolio which for 15 consecutive years between 1991 and 2005 consistently beat the returns of the S&P 500 index. He’s also known for his advocacy of Bitcoin and put half of his net worth into the asset in January.
When asked if he still held that position Miller confirmed that about “40% to 50%” of his money was in Amazon stock and his Bitcoin holdings were “about the same as Amazon”, adding that 80% of his net worth is split between the two assets.
Miller also discussed the Luna-based tattoo on the arm of Mike Novogratz, the founder of crypto asset management firm Galaxy Digital after the collapse of the Terra ecosystem:
“Somebody had sent me a picture of Mike Novogratz where he got a Luna tattoo on his arm months ago of the wolf howling at the moon, and it’s big. It’s like, whoops, maybe you should have got a Bitcoin on your arm, it’d be a little more enduring than that one.”
Novogratz has said that the tattoo will be a “constant reminder that venture investing requires humility” as Galaxy Digital posted a $300 million loss on its Luna investments.
“I felt bad for him when I saw some story of him going from something like $10 billion to $2 billion,” Miller said, “I’m like, yeah, that’s really tragic”.
Famed value investor and fund manager Bill Miller says he has “a lot” of bitcoin and has not sold any despite the recent crypto sell-off. He insisted that investors should put some of their liquid net worth in the cryptocurrency. Bill Miller Shares His Bitcoin Outlook Famed value investor Bill Miller is still bullish about […]
Veteran investor and fund manager Bill Miller explains why he thinks that it is currently “very bullish for bitcoin.” Miller noted that Russia has almost 50% of its reserves in currencies that are controlled by people who want to do them harm. Bill Miller’s Crypto Outlook: ‘It’s Very Bullish for Bitcoin’ Famed value investor Bill […]
Renowned investor Bill Miller says that as Bitcoin (BTC) adoption spreads so will its functional roles as a store of value. Miller tells CNBC in a new interview that people will choose to ascribe value to Bitcoin in the same way they do for various collectibles and investments. “Bitcoin in one sense has no intrinsic […]
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Veteran investor and fund manager Bill Miller says he has “a very big position” in bitcoin and expects to see a lot of institutional adoption this year, particularly among endowments and foundations. “Bitcoin is insurance against financial catastrophe,” he opined. Bill Miller Says ‘Bitcoin Is Insurance Against Financial Catastrophe’ Famed value investor Bill Miller talked […]
BTC price rejected near $58,000 but derivatives data shows traders positioned in a neutral-to-bullish, leaving sufficient “room” for a new all-time high in 2021.
Bitcoin had been underperforming most altcoins for the past two months, but that trend reversed this week when (BTC's) 20% rally pushed its market capitalization to break the $1 trillion mark on Oct. 6. That shifted investors' attention back to the leading cryptocurrency, and altcoins are currently in the red for the day.
The current positive momentum could be dangerous if Bitcoin traders become overconfident and abuse leverage to open long positions. To avoid this, traders need to carefully analyze derivatives markets to exclude this risk.
Notice above how the altcoin market capitalization increased by 5.8% while Bitcoin posted a 20.8% gain in the same period. Sure enough, there were some outliers like Shiba Inu (SHIB) which rose by 200%, Fantom (FTM), which rallied 60%, and Klaytn (KLAY), which gained 36%. However, the aggregate market capitalization from altcoins did not accompany Bitcoin's performance.
Some well-known personalities, such as billionaire Wall Street investor Bill Miller recently expressed their optimism for Bitcoin while raising concerns on most altcoin projects. Miller explicitly mentioned the "big banks" getting involved and referred to "huge amounts" of venture capital money flowing into Bitcoin.
The recent Bitcoin frenzy seems driven by the macro-economic scenario. The United States increased its debt limit by $480 billion to pay off its obligations until early December. The inflationary pressure brought by unending stimulus packages and meager interest rates has been fueling the long rally in commodities.
For example, oil reached its highest level in seven years, and wheat futures recently hit a record high not seen since February 2013. Even the S&P Case-Shiller home price index has presented an annualized 23.3% gain.
To understand if Bitcoin traders got overly excited, traders should analyze Bitcoin's derivatives indicators like the futures markets premium and options skew.
The basis rate measures the difference between longer-term futures contracts and the current spot market levels. This indicator is also frequently referred to as the futures premium.
A 5% to 15% annualized premium is expected in healthy markets, which is a situation known as contango. This price difference is caused by sellers demanding more money to withhold settlement longer.
The recent 20% Bitcoin price rally caused the indicator to reach the upper limit of this neutral zone, meaning investors are bullish but not yet overconfident. Whenever buyers demand excessive leverage, the basis rate can easily surpass 25%, as seen in mid-May.
To exclude externalities specific to the futures instrument, one should also analyze options markets.
The 25% delta skew compares similar call (buy) and put (sell) options. This metric will turn positive whenever "fear" is prevalent because traders expect potential downside.
The opposite holds when option traders are bullish, causing the 25% delta skew indicator to shift to the negative area. Readings between negative 8% and positive 8% are usually deemed neutral.
The above chart shows that there hasn't been a single instance of options traders becoming overconfident in the past six months, which would signal "greed" because the 25% delta skew dropped below negative 8%. Meanwhile, the indicator has ranged near 0 for the past week, showing balanced risks between the bears and bulls.
Those findings necessarily show a lack of confidence from buyers, but it is quite the opposite. Had Bitcoin bulls already been overly confident at $57,000, there would be little room for additional leverage, increasing the risk of a cascading liquidation if a momentary price correction occurred.
Bulls are modestly confident and even a 20% price correction is unlikely to change the situation because the futures market's basis rate shows a reasonable premium after the recent rally.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
The billionaire investor conveyed his predominantly bullish opinions on the crypto ecosystem during a recent online interview
Bill Miller, a seasoned Wall Street investor and founder of Miller Value Partners, advocated for the rise of Bitcoin (BTC) during a recent conversation with author William Green, but voiced skepticism around many of the altcoins birthed during 2017.
Miller subscribes to the well-documented thesis that Bitcoin portrays digital gold, and unlike many of his financial contemporaries — Warren Buffet being the most prominent — he has been a keen investor in the digital asset space.
Back in early 2016, Miller dedicated 30% of his portfolio to the leading crypto asset Bitcoin at an average value of $500, and has more recently motioned a filing with the SEC for The Miller Opportunity Trust to invest in BTC via the institutional-grade $2.25 billion Grayscale Bitcoin Trust.
During the interview, Miller correlated his first acquisition of Bitcoin to the current risk proposition witnessed today, all the while donning a Bitcoin baseball cap:
“Bitcoin is a lot less risky at $43,000 than it was at $300. It’s now established, huge amounts of venture-capital money have gone into it, and all the big banks are getting involved.”
Miller also shared his perspective on the potential of altcoins, insinuating that few projects of the thousands on the marketplace will survive the market’s tumultuous volatility over the coming years:
“There are 10,000 various tokens and stuff floating out there. The chances of more than a handful of them being worthwhile is very, very small. Bitcoin, ethereum, and a few others are probably going to be around for a while.”
Related: Clean-water nonprofit launches celebrity-funded Bitcoin Water Trust
Discussing the burgeoning influence of crypto exchange Coinbase, Miller advised investors to not be cautious over one to two years fluctuations of the Nasdaq-listed stock COIN, as in his qualified opinion, the asset offers a “default position for growth investors.”
In addition, he drew comparisons between the market capitalization of electric-car giant Tesla and Coinbase, suggesting that the exchange could reach and even surpass the former's valuation, which stands at approximately $790 billion due to its position in a “rapidly growing, changing industry.”
In a report filed with the U.S. Securities and Exchange Commission (SEC), the fund managers for the Miller Opportunity Trust, Bill Miller’s hedge fund, state that “bitcoin has significant upside potential as a form of digital gold.” The report details that despite its volatility, bitcoin’s “risk-reward is attractive.” Hedge Fund Manager Sees Bitcoin’s ‘Significant Upside […]
