Bill Miller predicts massive growth for bitcoin

The cryptocurrency market has always been a landscape of wonder and transformation. In a recent discussion, Scott Melker, host of The Wolf of All Streets Podcast, sat down with Bill Miller, Chief Investment Officer and Portfolio Manager at Miller Value Partners, to discuss bitcoin’s fascinating journey. From its skeptical early days to its current status as a powerful financial asset, Miller shared his personal evolution and deep belief in bitcoin’s future.

Scott Melker began the conversation by touching on Miller’s early involvement in bitcoin, dating back to 2014. Melker highlighted the path that many investors, including Miller, have taken: They initially viewed bitcoin as a speculative trade, then delved deeper and realized its broader significance.

Miller described his initial curiosity being sparked by an article that described bitcoin’s rise from zero to $200. He was fascinated by the technology and decided to invest and research it further. He took a leap of faith by sending his ID halfway around the world to an exchange in Eastern Europe. As Miller studied bitcoin’s whitepaper and other resources, he realized that the basic thought process behind its creation made a lot of sense.

“I read the white paper and a bunch of other material about Bitcoin and realized how much sense it made from a bunch of different perspectives,” he said of his journey.

Melker has observed that many investors, like Michael Saylor, have spent countless hours studying bitcoin and have shifted their views from short-term trading to long-term investing. Miller, who is currently a big bull on bitcoin, emphasizes its undervalued market cap in the grand scheme of global capital. With an addressable market that grows every day, he believes bitcoin’s current market cap of $1.3 trillion is significantly undervalued.

“We are in the very early stages of a shift in the way capital is managed and thought about,” Miller said. He emphasized Bitcoin’s potential to bring moral accountability and reduce violence, a unique intrinsic value compared to traditional currencies such as the euro, yen and dollar, which continue to lose value.

Miller highlighted the impact of social media in spreading awareness and understanding of bitcoin’s potential. With a 15-year track record of delivering impressive returns, bitcoin has proven its worth. According to Miller, adding bitcoin to any portfolio improves the Sharpe ratio, making it a valuable investment from a risk-adjusted return perspective.

He concluded by stating that despite Bitcoin’s relatively small share of global capital, it operates at a much more secure and accountable standard than any political system. As more people realize this, Bitcoin’s adoption and valuation are set to grow.