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January 11, 2022
Bill Miller, the former CEO of Legg Mason Capital Management, says he has invested half of his personal wealth in bitcoin.
Miller is a legendary investor for beating the S&P500 index for 15 years in a row from 1991 to 2005. With his MVP1 hedge fund, he was already investing 50% of the fund in bitcoin in 2017, but now he is also doing it with his personal assets.
Miller bought his first bitcoin back in 2014 at a price of about $200. He bought again at $500 but didn't buy again after that. He only started buying back this year, when bitcoin fell sharply after peaking at around $66,000 in April. In a few weeks, bitcoin crashed to around $30,000. Miller also owns shares of MicroStrategy and the bitcoin miner Stronghold Digital Mining.
The billionaire says bitcoin is insurance against a financial catastrophe. “All you have to believe is that the demand for bitcoin will grow faster than 1.5% in the coming years, driving the price up,” Miller said. If the demand for gold rises and gold becomes more expensive, more can be produced because mines that are not profitable now will become active again. With bitcoin, only 21 million bitcoins can come into circulation and 90% of all bitcoin has already been mined. The number of bitcoin now grows by only 1.5% annually.
Bill Miller says the small investor should certainly not invest half of his wealth in bitcoin. He does recommend investing about 1% in the cryptocurrency.
Read more about buying bitcoin here.
