Bill Miller cites bitcoin as a risk management strategy in the current climate

After Bill Miller extolled the possibilities for bitcoin adoption in the coming year in his Q4 letter, the value investor doubled down on such claims today in an interview with CNBC.

Amid market advances beyond the $40,000 mark, Miller said bitcoin is still posed to move higher and even "considerably higher." As firms like Square and PayPal buy up newly minted bitcoins each day and retail demand continues to climb while bitcoin's supply grows more slowly, bitcoin is likely to reach new highs, according to Miller. 

As people speculate where the top is, Miller said the Federal Reserve policy of pinning interest rates to zero makes cash a "guaranteed loser." Allocating one to two percent of your cash to bitcoin is a good hedge, even if the cryptocurrency ultimately fails, according to Miller.

"I think it's more a risk management strategy than anything else to have a little money in bitcoin," he said.