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US investor, fund manager, and philanthropist Bill Miller believes that the global economic situation could drive large corporations to allocate more funds into bitcoin. The former Chairman and CIO of Legg Mason Capital Management said that the BTC adoption curve is very yearly, although the asset’s market cap has surpassed some prominent names.
Rat Poison But For Cash; Miller Says
The 71-year-old investor is among the most well-recognized and respected hedge fund managers, known for managing a portfolio that beat the S&P 500 Index from 1991 to 2005, consecutively.
Although displaying skepticism regarding BTC in the past, Miller has been supportive of the asset lately, especially after the global economic hurdles prompted by the COVID-19 pandemic.
Back in November, the hedge fund manager highlighted that the demand from institutions and corporations is growing faster than BTC’s supply. Moreover, he noted that most large banks will own bitcoin at some point.
In a recent note to investors, Miller also offered “a few thoughts” about the “best performing asset category in 2020.” He mentioned the rapidly increasing price, saying that it has outperformed “all major asset classes over the past 1,3, 5, and 10 years.”
He said that BTC’s market capitalization is now greater than JPMorgan Chase & Co and Berkshire Hathaway, while it’s still very early in its adoption cycle. Speaking of Berkshire, he used the company’s founder famous rant that BTC is “rat poison” but turned it in a positive manner for the cryptocurrency:
“Warren Buffett famously called bitcoin ‘rat poison.’ He may well be right. Bitcoin could be rat poison, and the rat could be cash.”
Companies Could Start A Bitcoin “Torrent”
Miller doubled-down on his prediction that more corporations will enter the bitcoin space. Companies, such as Jack Dorsey’s Square, Michael Saylor’s MicroStrategy, or the insurance giant MassMutual, represent just the first waves of firms buying bitcoin.
“If inflation picks up, or even if it doesn’t, and more companies decide to diversify some small portion of their cash balances into Bitcoin instead of cash, then the current relative trickle into Bitcoin would become a torrent.”
It’s worth noting that earlier today, another Wall Street legend, Anthony Scaramucci, praised the cryptocurrency. He compared BTC with gold and said that bitcoin actually works better than the precious metal.
Featured Image Courtesy of CNBC
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