Bill Miller, an investor legendary, described Bitcoin as an insurance policy. While it may lack intrinsic value, it comes in handy in the event that there is a catastrophe.
Miller stated that he still has a substantial amount of Bitcoin in his portfolio.
BTC prices climbed to $45,000 on Thursday amid high market volatility.
In an interview with CNBC, Bill Miller, a legendary investor, stated that Bitcoin is what investors need in order to hedge against financial catastrophe.
According to the manager of the fund, who disclosed in January that he owned a large portion of his personal assets in Bitcoin, the crypto acts “like an insurance plan.”
His analogy is the famous investor. toldCNBC reports that insurance policies can be purchased even if they have no intrinsic value.
Legg Mason Capital Management Value Trust’s ex-chief investment officer said that this is precisely what makes people want insurance. The reason people want to insure is not that they want to lose their property or get into an accident. It’s because insurance will come in handy should the worst happen.
He explained that Bitcoin is insurance against financial disasters in comments referencedBy Insider
Miller also made comments about his crypto portfolio. Miller noted that his BTC allocation grew exponentially during Bitcoin’s bull market. The investor stated that although the market slump had caused some losses, he still maintained a large position.
According to the investor, the trend in cryptocurrency adoption will see large banks, pensions funds, endowments, as well as major banks, add Bitcoin to their balance sheet. According to him, KPMG Canada’s recent move signals a shift.
Bitcoin was trading at $45,350 at the time this article was written, approximately 3% higher than the previous 24 hours and about 22% higher than the week before. As markets react to the US’s new inflation data, today’s market action saw cryptocurrency trade sharply in the red.
The intraday highs of $45,600 were offset by a sharp drop below $44,000. Analysts are still bullish that the crypto bull is alive and well.