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

Markets • January 8, 2021, 5:35PM EST
The Block

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. 

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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.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.

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