Veteran Investor Bill Miller who has been leading the S&P 500 index with his flagship mutual fund for two consecutive years now comments on the rapid growth of Bitcoin and other major cryptocurrencies.
In the recently published 4th Quarter newsletter, the respected veteran flipped the famous Bitcoin snub that was originally made by another leading investor, Warren Buffett. He further added that the inflation that the country and the globe is facing might be linked to the growth of this cryptocurrency. He said that more than gold, Bitcoin currently has more value as an inflation hedge during these times.
Bitcoin To Replace The U.S. Dollar Soon, Believes Investors
Bill also said that this cryptocurrency has the potential to replace cash in the upcoming future. To explain this statement, he used Warren Buffett’s quote that said that Bitcoin is like rat poison squared. Buffett made this comment back in 2018. He had also said that this cryptocurrency could be used as a gambling instrument. Two years later, the assumptions made by this leading investor turns out to be more than true.
Miller argues in his newsletter that Buffet “might be right” and further states that cash is the rat in this deal.
To get into the current metrics of Bitcoin, we can say that this currency has risen by approximately 160% in the last three months. It has risen to record highs since its inception. Some analysts argue that this rise is temporary and that this inflation will deflate shortly. However, the scene is turning out to be different because more and more institutional investors are investing in this digital currency regardless of the inflation. This Wednesday, the value of Bitcoin crossed the $35,000 mark and its current market caps at $670 billion. Many investors and analysts are now of the opinion that this currency will soon replace the US Dollar, considering its rapid growth in times of crisis.
