[ad_1]
“
“ If inflation increases, or even if it doesn’t, and more companies decide to diversify a small portion of their cash balances into bitcoin instead of cash, then the relative runoff current in bitcoin would become a torrent. ”
“
That’s Bill Miller, founder of Miller Value Partners, in a letter to clients posted on the company’s website on Tuesday, reaffirming his optimistic view of the world’s most popular digital currency.
Miller is one of several high profile Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, who have embraced bitcoin. Part of the excitement comes from the growing adoption of digital currencies, including the announcement by PayPal Holdings Inc. PYPL,
last year, it would allow customers to buy cryptocurrency through their accounts and use the cryptocurrency for merchant payments.
Opinion: Bitcoin is heading for a supply shortage – and it will continue to push prices up
Bitcoin BTCUSD,
was trading at a high above $ 35,000 on Wednesday after a late 2020 surge. Digital currency has risen more than 20% this week and is up almost 350% in the past 12 months, according to FactSet.
Bitcoin’s higher load comes as other assets perceived to be risky build on strong gains in 2020, with stocks moving solidly higher as Democrats looked set to overthrow Georgia’s two seats in the US Senate after Tuesday’s election.
The Dow Jones Industrial DJIA,
The average climbed over 600 points, or 2%, to a record high above 31,000, while the S&P 500 SPX,
gained 1.4% as Nasdaq Composite COMP,
fell behind with a gain of 0.5%.
Miller argued that bitcoin could become increasingly seen as an alternative to cash as the Federal Reserve continues its policy “which aims to waste money in real terms on cash investments in the future. predictable”.
Miller concluded the missive with a riff on the billionaire investor – and noted the cryptocurrency skeptic – Warren Buffett’s description of bitcoin as “poison for rats.”
Buffett “might be right. Bitcoin could be rat poison, and the rat could be money, ”Miller said.
[ad_2]
Source link