Since the fall of last year, Bitcoin has seen a resounding rally that has led to it hitting a new high of $ 64.800 earlier this month. At this point, most people believe that rapid price appreciation implies that bitcoin is a speculative bubble that will eventually burst and lead investors to financial ruin.
However, a legendary investor disagrees as he thinks the world's leading cryptocurrency is ready to scale to new heights.
Bitcoin is not in a bubble
Many have called bitcoin the largest bubble in human history. Frankly, who can blame them? The flagship cryptocurrency went from $ 0,06 in 2010 to nearly $ 65.000 on April 14, leaving many in awe.
In an interview with CNBC's “The Exchange” on April 20, Miller Value Partners founder and CEO Bill Miller gave a positive valuation on bitcoin, noting that it is not in a bubble. “I don't think this is a Bitcoin bubble at all. This is simply the beginning of mainstreaming, ”Miller said.
Although bitcoin has since corrected in the region of $ 55.300 after hitting a new ATH, Miller is not at all shaken by the recent slowdown. According to him, the asset's bullish demand and supply dynamics suggest there is room for further upside.
“The supply [of bitcoin] is growing by 2% per year and the demand is growing faster and faster. That's all you need to know and that means it's going higher and higher ”.
Bitcoin is better than gold
Miller also indicated that bitcoin is likely to continue to experience sharp price fluctuations due to its notorious volatility. In fact, it claims that this volatility is the price that investors have to pay for the coin's breathtaking performance.
While there are over 2.000 cryptocurrencies on the market with some even superior, the billionaire fund manager is only interested in the pioneering cryptocurrency he sees as the next Amazon.
Miller shares the opinion of most experts that bitcoin is "digital gold". While gold is a $ 10 trillion asset and $ 1 trillion bitcoin, he felt that bitcoin is actually a better store of value than the precious metal. The veteran investor explained that the advantages of portability, divisibility and other characteristics give bitcoin a huge advantage over gold.
"It's easily portable and can be shipped anywhere in the world if you have a smartphone, so it's a much better version of gold as a store of value."
And what do you think of his statements? You have already started buy Bitcoins or to trade on reliable platforms? Whatever your choice, we always recommend that you invest your money with caution and only do so on safe and trustworthy platforms. By investing only money that you can afford to lose.
