Value Investor Bill Miller Predicts Advisors to Recommend 1-3% Bitcoin in Portfolios Soon
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Legendary investor Bill Miller anticipates that financial advisors will begin recommending a 1% to 3% allocation to Bitcoin in investment portfolios within the next three to five years.
Miller, who first purchased Bitcoin when it was trading around $200 after attending a lecture by entrepreneur Wences Casares, shared his insights in a recent interview with Forbes.
He underscored Bitcoin’s unique economic properties, noting that its supply remains fixed regardless of changes in demand or price. Bitcoin’s supply is capped, unlike traditional currencies or commodities like gold. Higher prices in these assets can lead to increased production. However, Bitcoin’s availability remains unaffected by market dynamics.
“It’s the only economic entity where the supply is unaffected by the demand or the price,” he said. “At the most basic level, all you have to believe is that the demand for Bitcoin will grow faster than the supply.”
He pointed out that Bitcoin’s price can keep going up if more people want it because its supply won’t increase. This differs from gold. When gold’s price rises, more gold may be mined, potentially driving the price back down.
Earlier this year, JPMorgan found that Bitcoin surpassed gold in investor portfolio allocations when adjusted for volatility. The bank reported that Bitcoin’s allocation in portfolios was 3.7 times greater than that of gold.
He said his interest in Bitcoin was sparked by Casares, an Argentine entrepreneur who spoke at the Allen & Co. Sun Valley Conference in 2012. Casares shared his experiences with economic instability in Argentina, where inflation and
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