Veteran value investor Bill Miller says Warren Buffett’s declaration that Bitcoin is rat poison could be right on the money.
In his market letter summarizing Q4 2020, the famed asset manager says the potential devaluation of the dollar could dramatically boost Bitcoin’s corporate adoption at the expense of cash.
“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