Legendary American value investor, Bill Miller, has been left surprised by the performance of Bitcoin despite the crippled cryptocurrency market.
In a recent interview with Barron, Miller said that he expected Bitcoin to fall further after the FTX fiasco. Investors are withdrawing their coins from the market as the dust from the failed cryptocurrency exchange is yet to settle. He went on to add that he is optimistic about Bitcoin’s performance in the future.
“I’m surprised Bitcoin isn’t at half of its current price, given the FTX implosion. People have fled the space, so the fact that it’s still hanging in there at $17,000 is pretty remarkable. But inflation is being attacked, and real rates are rising rapidly. I would expect that if and when the Federal Reserve begins to pivot, Bitcoin would do quite well.”
Also read: Here’s How Much Your $1000 Invested In Bitcoin 10 Years Ago Will Be Worth Today
Treat Bitcoin like gold
Miller is a bitcoin holder, who believes that bitcoin should be treated like gold. He believes in the long term investment power of the coin.
“First, I want to differentiate between Bitcoin, which I see as a potential store of value like digital gold, and all the other cryptocurrencies, which can be lumped together in the category of venture speculation. Most of them, like most venture investments, will fail. But I’ve never heard a good argument that you shouldn’t put at least 1% of your net worth into Bitcoin. Anybody can afford to lose 1%.”
Eminently, Miller’s operator speculation ability is featured by the way that his administration of a portfolio beat the S&P 500 List from 1991 to 2005 successively. Other than Bitcoin, Miller’s operator portfolio involves Amazon and Silvergate Capital.
Reasons for the collapse of crypto market
The FED has announced the increase of interest rates and hinted towards more increases than expected in the future.
FTX filed for bankruptcy on November 11, this year in the U.S. Its CEO, SBF has been arrested in the Bahamas. The grounds for his arrest are fraud, money laundering, and other financial crimes. He is being extradited to the U.S. where further legal proceedings will take place. The failure of the leading exchange crashed the entire crypto market. The market is still not showing signs of recovery from the debacle.