Mutual fund titan Bill Miller is back on Bitcoin.
“One of the interesting things about Bitcoin is that the higher it goes, the riskier it gets,” Miller told CNBC on Friday. “That’s the opposite of what happens with most stocks.”
Miller continued to describe Bitcoin as “a supply and demand story” with around 900 Bitcoins daily and a flood of retail and institutional investors taking up enormous amounts of the available supply.
Some of those big investments came from companies like tech firm MicroStrategy, which has bought over 70,000 BTC with plans to buy more, and London-based wealth manager Ruffer Investment, which put $ 740 million in Bitcoin in late 2020.
“For those waiting to pull out, they got it in the first quarter. They could have bought Bitcoin and $ 4,000 in the first quarter, “Miller said, referring to the almost 50% intraday crash of Bitcoin in March 2020.
Given Bitcoin’s more than 300% rally in 2020, which had increased another 40% as early as 2021, Miller said the price of those returns was the volatility of the asset.
“Expect it to be very, very volatile,” Miller told CNBC. “If you can’t stand the volatility, you probably shouldn’t own it. But its volatility is the price you pay for it.”