Bitcoin (BTC) gets “less risky the higher it goes,” value investor Bill Miller said on CNBC’s “The Exchange” program.
What Happened: Miller confirmed he was as excited about Bitcoin at its all-time high $41,000 levels as he was when the apex cryptocurrency was trading just under $15,000 in early November.
The co-founder and chairman of Miller Value Partners told CNBC’s Kelly Evans Saturday that Bitcoin is the opposite of most stocks since it gets less risky as it goes higher because “Bitcoin is so early in the adoption cycle.”
“Even though [the Office of the Comptroller of the Currency] will allow all the big banks and investment banks to custody or to buy and sell bitcoin, you can’t do that with any of them,” said Miller.
Bitcoin is a “supply and demand story,” as per the famed investor. Miller said 900 bitcoins are created every day but it is estimated that the customers of Paypal Holdings Inc (NASDAQ: PYPL) and Square Inc (NYSE: SQ) are buying all of them.
Why It Matters: Miller highlighted the Fed’s decision to pin interest rates to 0% for the foreseeable future and said that the inflation rate of 2% is a reason enough for institutions and individuals to keep 1-2% of their savings in Bitcoin.
“You cannot cut the head of the snake here, it’s decentralized,” remarked Miller on being questioned on the regulatory risks surrounding Bitcoin.
Price Action: Bitcoin traded 14.17% lower at $34,905.43 at press time. On Friday, Grayscale Bitcoin Trust (OTC: GBTC) closed 1.22% lower at $44.42.
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