“If inflation picks up, or even if it doesn’t, and more companies decide to diversify some small portion of their cash balances into bitcoin instead of cash, then the current relative trickle into Bitcoin would become a torrent. Warren Buffett famously called Bitcoin ‘rat poison.’ He may well be right. Bitcoin could be rat poison, and the rat could be cash.”
Miller adds that Bitcoin was the best performing asset category in 2020, giving it a bigger market capitalization than the largest bank in the US by assets, JPMorgan Chase, and Warren Buffett’s investing conglomerate, Berkshire Hathaway.
Miller says Bitcoin is entering the new year with substantial upside over gold and “many advantages over the yellow metal.”
Miller highlights big institutional bets on Bitcoin as a hedge against inflation as a signal that deep pocketed investors are noticing the asset’s upside potential.
Miller made his first bet on Bitcoin in 2014. At the time, Miller allocated 1% of his net worth to the cryptocurrency when Bitcoin was roughly $900. It is currently up by nearly 4,000% from 2014 levels.
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