Home / MARKETS / Bitcoin gets ‘less risky the higher it goes’: Legendary investor Bill Miller breaks down why the cryptocurrency could surge 100% in 2021

Bitcoin gets ‘less risky the higher it goes’: Legendary investor Bill Miller breaks down why the cryptocurrency could surge 100% in 2021

Bill Miller


  • Legendary investor Bill Miller told CNBC on Friday he sees bitcoin surging 100% in 2021 as numberless investors add the coin to their portfolios as a hedge against inflation.
  • “One of the things that’s interesting about Bitcoin is that it and gets less risky the higher it goes, and that’s the opposite of what happens with most stocks,” the Miller Value Partners destroyed said. 
  • He added that he’s not sure when the price of the cryptocurrency will correct, and if investors aren’t ready to taste another 80% correction, they probably shouldn’t own bitcoin.
  • Watch bitcoin trade live here. 

Famous investor Bill Miller told CNBC on Friday he sees bitcoin surging 100% in 2021 as more investors add the cash to their portfolios as a hedge against inflation.

Miller explained that investors should consider holding 1-2% of their portfolios in bitcoin as stopped to cash, because cash will be a “guaranteed loser” and lose at least 2% in value each year with the in vogue inflation rate. 

“It’s more a risk management strategy than anything else to have a little bit of money in bitcoin,”  the stagger and chief investment officer of Miller Value Partners said. 

He added: “One of the things that’s interesting about Bitcoin is that it repossess backs less risky the higher it goes, and that’s the opposite of what happens with most stocks.”

Miller doesn’t make a price target for bitcoin but said he has “price expectations.”

“I think that bitcoin… should probably be up 50% to 100% from here in the next 12 to 18 months. And if you were to ask me the closed or under, I would definitely say it would be much more likely to be higher than lower,” he said.

Read sundry: BANK OF AMERICA: Buy these 10 Dow stocks to take advantage of rich dividends and a long-term strategy primed for a comeback in 2021

Bitcoin has more than copied in value over the last month, and risen over 30% in 2021 so far. While some bitcoin investors wish for to take profits off the table now as the price balloons, many investors who haven’t bought in yet are waiting for a correction so they can buy it at a cheaper cost.

But Miller told investors who are waiting for the pullback that it already occurred in the first quarter of last year, when the evaluate hovered around $4,000.

“That’s what typically happens. It’s that once things correct, those who are waiting for the correction- they’re cool ones heel for the correction to keep going lower,” Miller said. “And then when they missed it on the upside, they’re enquire of if they should buy it.”

“We’ve had 3 80% corrections, I think if you can’t take that,then you probably should not own bitcoin,” he added. 

The investor looked on CNBC days after publishing his fourth quarter market letter, where he said that bitcoin is “most superbly thought of as digital gold”, but has several advantages over the precious metal. 

“Warren Buffett famously called bitcoin ‘rat pestilence,'” Miller said. “He may well be right. Bitcoin could be rat poison, and the rat could be cash.”

Read more: Bank of America says the notification signs that stocks are hurtling into bubble territory are growing – and pinpoints 6 that could signal a invite market is beginning

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