Bill Miller is the founder of the hedge fund Miller Value Partners, the chairman, and chief investment officer. He wrote the fourth quarter of 2020 market analysis open letter for the company, mentioning that in an inflationary environment, there will be More and more institutional funds are pouring into Bitcoin investment.
Miller Value Partners is an investment advisory company founded in 1999. It is committed to maximizing the long-term wealth of clients. It mainly provides investment management services for high-net-worth clients, institutions, and private equity funds. According to the company's official website data, as of October 31, 2020, Miller Value Partners manages more than $2.5 billion in assets.
In a series of previous reports in the unified dynamics area, Miller was interviewed in July 2017 and said that his MVP1 fund bought a large amount of Bitcoin at an average price of US$350 between 2013 and 2014, accounting for about 5% of the asset allocation, and even Raise the proportion to 50% in 2017. Obviously, Miller is a long-term supporter of Bitcoin.
Digital gold: Inflation drives FOMO to invest in Bitcoin
Miller mentioned in an open letter the day before yesterday that the United States Federal Reserve (Fed) is implementing an inflation policy so that cash will face real losses in the foreseeable future.
Therefore, payment company Square, MassMutual, and Nasdaq-listed commercial software company MicroStrategy have all chosen to transfer some of their cash assets to Bitcoin; users of global third-party payment giants PayPal and Square The daily purchase volume on the platform has exceeded the daily new casting volume. Therefore, he believes that Bitcoin is a better "digital gold" than gold: It is best to treat Bitcoin at this stage as digital gold, but it has more advantages than gold.
According to Bitcoin treasuries, MicroStrategy is currently the largest listed company holding Bitcoin, spending a total of US$1.125 billion to purchase 70,470 BTC, while Square bought 4,709 BTC for US$50 million, and the prices of these assets have more than doubled. MassMutual also spent $100 million to purchase 5,470 bitcoins last month.
These institutions formed a large number of buying orders in the second half of last year, pushing the price of Bitcoin to new highs, and Miller pointed out that it is only the beginning of the adoption cycle. According to Trading View data, Bitcoin has broken historical records one after another today. The exchange Binance reported a maximum of US$37,700 before the deadline, an increase of 363% compared to the closing price of US$8,145 on the same day last year.
The market value of Bitcoin also beats many multinational companies. AssetDash statistics show that Bitcoin currently defeats the Chinese e-commerce giant Alibaba Group with a market value of US$695.7 billion, and has secured the eighth largest asset in the world by market value. It has long surpassed financial giants including JP Morgan Warren Buffett, the holding company Berkshire Hathaway and other companies.
Miller predicts that if the Fed causes the inflation rate to continue to rise, or even if the inflation rate no longer increases, but more companies decide to allocate some of their cash in Bitcoin to diversify risks, then the current funds flowing into the Bitcoin market will be compared It's just a "trickle downstream," and the future will see larger and more turbulent funds emerge.
In the end, Miller did not forget to tease Buffett, who was looking to empty Bitcoin, and emphasized that it is a better choice than cash:
“Warren Buffett famously called bitcoin rat poison. He may well be right. Bitcoin could be rat poison, and the rat could be cash,"
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