The notion that Bitcoin would continue to dominate the coin market is one that a few people contest. One Bitcoin enthusiasts has reiterated his belief that the premier coin is among the few worth sparing thought and money on even as he considers most altcoins worthless.
Bill Miller, a 68 year old billionaire investor and fund manager who has been reported worth $2 billion spoke to Bloomberg airing his view on the coin market.
The media summarized the interview in a tweet:
“Bill Miller says Bitcoin is interesting but that most cryptocurrencies worthless”
Miller said that he holds “considerable amount of bitcoins” in partnership with other investors, saying that he has a personal position at an average buy-in of $300.
Miller has been investing in Bitcoin for a few years with most of his hedge fund’s liquid assets valued at more than a billion dollars invested in the digital currency. This is a significant amount and an indication that most of his fortune is in Bitcoin.
On why he has so much confidence on the coin, he said
“It is an interesting technological experiment, that we don’t know how it is going to come out. Right now, at $7,800 or wherever it is today, is much less risky than when it was at $100, for the reason that every day that it doesn’t blow up, go to zero, or get regulated out of existence, is that more money is going to flow into the ecosystem.”
As at the time of filing this report, Bitcoin is trading at $8,177 on Saturday July, 28.
Interestingly, he said there are just 17 million bitcoins in circulation for 25 millionaires worldwide, adding that if each of these millionaires acquires one bitcoin, the price of the cryptocurrency would grow exponentially. He seems optimistic that even though this scenario doesn’t play out, that the scarcity of Bitcoin would act in its favor to move prices in one direction on the long run- upwards.
On his view on the other 1600 altcoins, Miller said that the most stable coin in the coin market is Bitcoin adding that most altcoins are worthless. He said that Bitcoin has the highest chance of being successful followed by Ethereum.
Many critics of Bitcoin view it as overvalued due to the fact that there are no practical on-net uses on the bitcoin network. However, what is obvious is that the concept of the coin’s invention is to act as an alternative to existing modes of transfer of value. The coin therefore should not be assessed based on the functionality of publicly traded companies but viewed as a monetary instrument.
Miller obviously is one of those investors who view Bitcoin as non-correlated assets such as gold. The main difference being that the coin is easier to transfer from place to place.
According to Miller, with the prominence of custodianship, institutional investors will gradually buy into it with many such as banks storing it as assets under key, it is just a matter of time for the coin capitalization to be comparable to gold which currently is $8 trillion.