The recognized and respected investor Bill Miller is bullish about Bitcoin (BTC) as an insurance policy against financial catastrophe. During a recent interview, he mentioned that Bitcoin is a valuable digital tool that could help vulnerable populations in different countries. Over the last few weeks, Bitcoin has been in a price range between $29,000 and $31,000.
Bill Miller Bullish About Bitcoin
Despite Bitcoin being traded at close to $30,000 (more than 50% below its all-time high), the legendary investor Bill Miller remains bullish about Bitcoin and its use cases. The portfolio manager considers that Bitcoin works as an insurance policy against financial catastrophe.
Over the last years, we have seen how governments printed large amounts of money in order to face COVID-19 challenges and keep society afloat. However, things have been going in the wrong direction. With the war in Ukraine and supply chain issues around the world, inflation has skyrocketed in most countries.
The surprising thing is that inflation has also hit countries in Europe rather than the usual developing countries. Estonia, Lithuania and Poland are the countries with the highest inflation rates in the European Union. It is also worth pointing out that currency depreciation and higher prices due to supply chain disruptions are two different things. While the former has an impact on the value of the currency we use, the latter affects price levels.
Therefore, we should focus on understanding how currency depreciation is affecting our purchasing value. Furthermore, Europe’s decision to impose sanctions on Russia after the invasion of Ukraine is also creating a large burden for middle- and low-class families in Europe, mostly with higher energy and food prices.
Due to all the money printing involved over the last few years, there have been economic disruptions all over the world. Bill Miller said about it:
“When the Fed stepped in and started gunning the money supply and bailing out the mortgage rates, Bitcoin functioned fine. There was no run on Bitcoin. The system functioned without the Fed and without any interference. Everybody got their Bitcoin, the price adjusted, and then when Bitcoiners realized that, ‘Wait, we’re going to have inflation down the road,’ Bitcoin went to the roof.”
Therefore, Bitcoin becomes an insurance policy against these political and economic decisions unilaterally taken by Western governments over the last few years. Another thing that is worth taking into consideration is that Bill Miller considered that Bitcoin could help people in different countries.
For example, in El Salvador, people are using Bitcoin to receive remittances from family members in the United States. Rather than relying on traditional payment methods and centralized financial institutions that take a large portion of their remittances in commissions, they are now able to use the Bitcoin Lightning Network (LN) and avoid paying fees.
Money providers in the country could lose close to $400 million a year if everyone sending remittances from the United States would start using the Bitcoin Lightning Network.