- William Miller says the higher the price of Bitcoin gets, the less riskier it becomes.
- The Bitcoin asset can now be thought of as a digital gold
According to Miller, while responding to a question posed by Evans, he alluded that one of the wonders of the crypto asset is that the higher the price gets, the less riskier it becomes. He further highlighted that this is the opposite of what happens with most stocks.
The investor also went on to note how the entrance of institutional investors like PayPal and Square is eating up the supply of Bitcoin. He noted that Bitcoin’s supply is only increasing by 2% on a yearly basis and the demand keeps increasing very fast.
Miller went in to point out that BTC’s volatility would continue to remain very high. He adds that holders of the coin who might be unable to bear the volatile nature of the coin shouldn’t be holding the asset at all then.
The coin has experienced “three price corrections of 80%” which he notes that it is very normal for a technology like BTC.
Bitcoin has performed better than all assets
Miller in a 4th quarter market letter of 2020 said that Bitcoin has performed better than all major assets in the past decade. The market cap of the cryptocurrency has also beaten that of institutions like JP Morgan Chase and Berkshire Hathaway despite still being in its earliest stage.
In the letter, Miller also noted that organizations like Microstrategy, Square, MassMutual and the rest of them were also now investing in BTC. According to him, they were doing that to mitigate against the losses they could run into if they had left their assets in cash.
He concluded the letter by stating that Bitcoin can be thought of as a digital coin.