Bill Miller, a seasoned investor and fund manager, explains why he believes bitcoin is now "extremely optimistic." Miller pointed out that over half of Russia's reserves are held in currencies controlled by individuals who seek to hurt them.
'It's Very Bullish for Bitcoin,' Bill Miller said of the cryptocurrency market.
In an interview with CNBC on Wednesday, renowned value investor Bill Miller discussed the future for crypto amid the Russian-Ukraine conflict. Miller Value Partners was founded by him, and he presently serves as its chairman and chief investment officer. He is in charge of the Opportunity Equity and Income Strategy funds at the business. He co-founded Legg Mason Capital Management before joining Miller Value Partners.
A increasing number of nations have placed sanctions on Russia as a result of its invasion of Ukraine. The Russian currency and equities of Russian firms listed overseas have both fallen as a result of this. "We will paralyze the assets of Russia's central bank," European Commission President Ursula von der Leyen declared last week. Its transactions will be halted as a result of this. It will also make the central bank's assets hard to dispose."
"If you look at Russia right now, 16 percent of their $640 billion in reserves is in dollars," Miller noted. They have a 32 percent euro holding. As a result, they have nearly half of their deposits in currencies controlled by individuals who wish to hurt them." He went on to say:
From Russia's perspective, this is not a good situation to be in. They hold 22 percent of their reserves in gold, which is the only component of their reserves that is not under the authority of other countries.
"So I think if you're a country out there with a non-reserve currency — there's about a hundred of them — you might think about saying: 'You know what, maybe we could have something else out there that other countries can't harm us with, and is impervious to inflation or being manufactured in larger quantities," the billionaire investor suggested. He came at this conclusion:
As a result, I believe it is quite positive for bitcoin in particular.
Miller then went on to discuss other cryptocurrencies. He went on to say, "The rest of crypto is different." "I believe bitcoin is one-of-a-kind, and the rest of the cryptos should be seen as risky investments because they all attempt to tackle different problems."
For a long time, the renowned value investor has been a bitcoin bull. He revealed in February that he had a "quite large" bitcoin holding and compared the cryptocurrency to digital gold in terms of inflation protection.
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