“
“If inflation rises, or even if it doesn’t, and more companies decide to diversify a small portion of their cash balances into bitcoins instead of cash, then the current flow in bitcoins will become a torrent “.
”
This is Bill Miller, founder of Miller Value Partners, in a letter to customers posted Tuesday on the firm’s website, reaffirming its bullish outlook on the world’s most popular digital currency.
Miller is one of several Wall Street investors, such as Stanley Druckenmiller and Paul Tudor Jones, who have adopted bitcoin. Part of the excitement comes from increased adoption of digital currencies, including the PayPal Holdings Inc. announcement. PYPL,
last year, which would allow customers to buy cryptocurrency through their accounts and use cryptocurrency for merchant payments.
Opinion: Bitcoin is heading for a shortage of supply, and this will continue to drive up prices
Bitcoin BTCUSD,
it traded above a record $ 35,000 on Wednesday after a rise in late 2020. The digital currency has risen more than 20% this week and has risen nearly 350% in the past 12 months, according to FactSet.
Bitcoin’s highest charge comes as other assets perceived as risky are based on the strong gains of 2020, with stocks moving sharply as Democrats appeared on the verge of turning Georgia’s two seats in the Senate upside. of the United States after Tuesday’s election.
The Dow Jones Industrial DJIA,
The average rose more than 600 points, or 2%, to an all-time high above 31,000, while the S&P 500 SPX,
gained 1.4% due to NASdaq Composite COMP technology
it lagged behind with a gain of 0.5%.
Miller argued that bitcoin could increasingly be seen as an alternative to cash, as the Federal Reserve pursues the policy “which aims for cash investments to lose money in real terms for the foreseeable future.”
Miller concluded the letter with a riff on billionaire investor – and noted that skeptical cryptocurrency – described Warren Buffett of bitcoin as “rat poison.”
Buffett “may be right. Bitcoin could be a rat poison and the rat could be effective, ”Miller said.