Investor Bill Miller, whose flagship mutual fund in 2020 beat the S&P 500 for the straight second year, said he believes bitcoin could replace cash and markets are underpricing inflation risk.
“Warren Buffett famously called bitcoin rat poison. He may well be right. Bitcoin could be rat poison, and the rat could be cash,” Miller noted in this Q4r market newsletter, adding that the cryptocurrency has many advantages over gold as an inflation hedge.
Legendary investor Buffett referred to bitcoin as “probably rat poison squared” and as a gambling instrument in 2018. However, several public listed companies such as MicroStrategy and Square diversified their cash holdings into bitcoin in the second half of 2020, boosting its appeal as a store of value.
Bitcoin has rallied by over 160% in the past three months and rose to record highs above $35,000 early Wednesday. The cryptocurrency’s market capitalization now stands at $670 billion, more