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“If inflation rises or falls, and more companies decide to diversify a small portion of their cash balances into bitcoin instead of cash, then the current relative flow in bitcoin would become a torrent.”
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This is Bill Miller, the founder of Miller Value Partners, in a letter to customers, published on the company’s website on Tuesday, reaffirming its bullish outlook on the world’s most popular digital currency.
Miller is one of several Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, who have embraced bitcoin. Part of the excitement comes from the increased adoption of digital currencies, including the announcement from PayPal Holdings Inc. PYPL,
last year that would allow customers to buy cryptocurrencies through their accounts and use cryptocurrencies for commercial payments.
Opinion: Bitcoin is heading for a shortage of supply – and that will continue to drive up prices
Bitcoin BTCUSD,
traded on Wednesday at a record high of $ 35,000, after an increase at the end of 2020. Digital currency has grown by more than 20% this week and has grown by almost 350% in the last 12 months, according to FactSet.
The Bitcoin tax is higher because other assets perceived as risky are based on strong gains in 2020, with much higher moving stocks as Democrats emerged on the verge of overturning both seats in Georgia in the US Senate after the big election. period.
DJIA Industrial Dow Jones,
The average rose more than 600 points, or 2%, to an all-time high of more than 31,000, while the S&P 500 SPX,
gained 1.4% as a Nasdaq Composite COMP heavy technology,
lagged behind by a gain of 0.5%.
Miller argued that bitcoin could become increasingly seen as an alternative to cash as the Federal Reserve pursues a policy “whose goal is for cash investments to lose money in real terms for the foreseeable future.”
Miller ended the letter with a riff on the billionaire investor – and noted the skeptic of cryptocurrencies – Warren Buffett’s description of bitcoin as “rat poison”.
Buffett “may be right. Bitcoin could be poison to rats, and the rat could be in cash, ”Miller said.