Bill Miller IV, one of the most recognized Bitcoin bulls in the market, claims that Bitcoin is the best performing asset for 8 of the last 10 years, and that not owning investments in this cryptocurrency is “a big mistake.”
For this important investor of Bitcoin, known in his father's firm as "Bill Four", maintains a positive view on the future of this cryptocurrency, the most important of the digital markets, is essential. Bill Miller IV, son of renowned and legendary investor Bill Miller, is one of the Bitcoin bulls, who strongly defended investment in this cryptocurrency. “Bill Four” noted that Bitcoin’s performance and returns have been better than all investment assets listed on the markets, including the Nasdaq.
Miller IV published a letter recent where he explained why the investment management company, Miller Value Partners, purchased a 0,75% convertible bond from MicroStrategy, one of the largest institutional investors in Bitcoin so far. In his letter, Miller IV noted that Bitcoin is an excellent investment asset, which has technical and financial characteristics that make it more special than other asset classes present in the markets. The investor highlighted that the decentralization of the network, its ability to process fast and cross-border payments and transactions, the robustness and security offered by interconnected miners, its limited supply of 21 million coins, and its ability to allow users to manage their own funds and resources, are part of what has made this cryptocurrency appreciate over time.
Currently, BTC's performance in the markets has left almost everyone amazed, despite the recent correction that the cryptocurrency is experiencing in its price. Miller IV also highlighted that one of the reasons why users now want to have bitcoins is because “There is no other asset that combines Bitcoin's liquidity with its upside potential".
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A free purchase on Bitcoin
According to Miller IV's letter, the purchase of the MicroStrategy bond gave Miller Value Partners the option to purchase the bond. “almost free on Bitcoin”.
The investor made these claims noting that MicroStrategy has an investment in bitcoins valued at more than $2.200 billion as of this writing, and that the bond offering made by this company resulted in its only debt; one that Miller IV believes is half of what the company is worth. According to the letter, the ability to Michael saylor, CEO of MicroStrategy, seeing early trends in Bitcoin is another reason that led the company to invest in this business intelligence company. Faced with this, the investor explains that he found very few disadvantages to investing in MicroStrategy, and many advantages to doing so. Among these is the option of buying bitcoins for “almost free.”
Refuting criticism about Bitcoin
In addition to defending Bitcoin investment as an asset with great potential for returns and appreciation, Miller IV also focused on refuting several of the poorly supported claims and criticisms that Bitcoin detractors make, even today.
For example, Miller debunked erroneous claims that Bitcoin has no intrinsic value because it doesn't produce anything, or because it's not backed by any real-world assets. He also refuted claims that Bitcoin is a bubble or a Ponzi scheme that will eventually collapse, or that regulations will ban Bitcoin, cause it to lose its value and disappear. The investor also made a point of explaining that Bitcoin's volatility is not a factor against investors, and that it is unlikely that another, much more robust technology will emerge to replace it.
Bitcoin is not a Ponzi scheme
In the case that Bitcoin has no value, that it is a bubble or a Ponzi scheme, the young investor pointed out that only those who do not understand how it works are capable of making such statements. For Miller IV, it is enough to note that, within this network, there are no intermediaries, nor do you need to attract new investors to generate returns; therefore, it is not a Ponzi scheme. Likewise, Miller IV points out that among the many things that Bitcoin “produces” are the storage capacity, independence and empowerment of users; characteristics of high value for those who participate in this network.
Decreasing volatility
The investor explained that Bitcoin's volatility, one of the things that causes the most concern among new users and investors, will decrease as the market matures.
“When Bitcoin’s volatility approaches that of Treasury bonds, its market cap and price per bitcoin will be immensely higher, leaving little room for excess returns.”
As for regulations, the arrival of more institutional participants shows, for Miller IV, that the regulatory status of Bitcoin “has never been brighter”; in addition to the actions of many departments, such as the Office of the Comptroller of the Currency (OCC), attached to the United States Department of the Treasury, the statements of the Federal Reserve Bank of Saint Louis on this cryptocurrency and the collection of cryptocurrency taxes by the American Internal Revenue Service (IRS) demonstrate that the country is adapting to new technologies. As Miller IV explains, “It would be an abuse of power to sell such valuable property to a government's constituents, tax it, and then ban it.”; He also highlighted that the current president of the Securities and Exchange Commission (SEC), --Gary Gensler, is a “Bitcoin fanatic.”
Even the nominee for the new Treasury Secretary, Janet Yellen, appears to be taking a somewhat more favorable attitude towards Bitcoin. The official announced recently that cryptocurrencies can bring greater benefits to the financial system, and that the department will promote the use and inclusion of digital assets within legitimate activities.
“I think it is important that we consider the benefits of cryptocurrencies and other digital assets, and the potential they have to improve the efficiency of the financial system.”
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