A well-known US investment fund manager, Bill Miller, is convinced that the price of bitcoin (BTC) will continue to rise. Miller makes a number of remarkable statements to CNBC. He estimates the chance that bitcoin will go to $0 is smaller than ever.
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Supply and demand
Miller: „The story of bitcoin is simple: supply and demand. The demand for bitcoin simply seems to be growing faster than the new bitcoin.
A good example of this is the Bitcoin Trader American companies Square and Grayscale. They bought $2.3 billion worth of bitcoin in the third quarter of 2020. And that while bitcoin miners earned only about $1 billion in bitcoin over the same period.
Square and Grayscale are just two parties, there are millions of bitcoiners and many companies that also like to buy bitcoin.
Miller is a true investment veteran. Under his leadership, the Legg Mason Capital Management Value Trust Fund outperformed the S&P 500 for 15 years, according to Coindesk.
Miller is currently chief investment officer at Miller Value Partners. His hedge fund announced in 2017 that half of their portfolio consisted of bitcoin.
According to Miller, it’s only a matter of time until every investment bank and other investors want a bit of bitcoin. He also identifies gold as a possible candidate; gold has been a means to combat inflation for millennia.
Miller warns against high inflation through the policies of the Federal Reserve (the central bank of America). It is also expected that further support packages will be put in place to make the major consequences of the current COVID-19 situation somewhat bearable. And that means more dollars in the market.