“In his view, the growth of this digital currency is not a bubble, but the beginning of its entry into the mainstream of the economy,” said a prominent US investor in an interview with CNN.
to the the report Veteran American investor Bill Miller said on Tuesday that he believed bitcoin was entering the mainstream of the economy with strength.
He argued that the current uptrend in bitcoin is different from the rise and fall of 2017, adding that he believes bitcoin still has room for growth.
Bitcoin is currently trading at around $ 55,400 (Wednesday afternoon) and is still up 90 percent from the beginning of the year, despite falling on Sunday, according to the Quin Desk website.
Miller, who first bought the digital currency in 2014 and 2015, when the average price of Bitcoin was $ 350, added:
Supply [بیت کوین] It grows by 2% annually and the growth rate of demand is faster than that. That’s all you need to know, and that means the price goes up.
However, he acknowledged that bitcoin, which is historically volatile, will continue to experience sharp price fluctuations, as happened earlier this week, pushing the digital currency below $ 60,000. Bitcoin had reached a record high of $ 65,000 as of Saturday.
The American investor stated that the growth of bitcoin in 2017 was actually a bubble that finally burst, but now it is different. Miller argued:
I do not think this at all [رشد] Bitcoin is a bubble. In my opinion, this is just the beginning of its entry into the mainstream.
The price of bitcoin rose sharply in 2017, reaching a record high of about $ 20,000 in December. In the following months, during what became known as the “winter of digital currencies,” Bitcoin lost 80 percent of its value.
Even during the bubble period, bitcoin fell 20 percent at five different points, so bitcoin fluctuations are a cost to pay for its price performance.
Bitcoin traded below $ 11,000 until recently in October last year, but its price growth revived in the fall and continued until 2021.
Acceptance of bitcoin by institutions has been suggested as one of the factors increasing its price. During this time, companies like Tesla have been buying bitcoins using cash reserves on their balance sheets.
Morgan Stanley and Goldman Sachs, two Wall Street banking giants, are also taking steps to offer bitcoin investing options to their asset management clients.
Miller said he agrees with other proponents of the rise of digital currencies that bitcoin is “digital gold.”
Rarity is one of the main features of Bitcoin, as its supply limit is limited to 21 million units. There are currently 18.69 million bitcoins in circulation, according to CoinDesk. The new bitcoins will enter the market as a reward for extractors to approve transactions in the decentralized network of this digital currency.
Gold is an asset class worth about $ 10 trillion. Bitcoin is worth $ 1 trillion and can be distributed almost indefinitely. Bitcoin is easily portable and if you have a smartphone you can send it anywhere in the world. So as a reserve the value of the version is much better than gold.
Bill Miller is the founder and chief investment officer of Miller Value Partners. While working for Legg Mason, he ran an investment fund that traded for 15 years on the S&P 500 in the US stock market.