Billionaire Bill Miller calls Bitcoin ‘insurance’ against financial catastrophe

Bill Miller, the billionaire founder of Miller Value Partners and Chief Investment Officer, said that Bitcoin (BTC), is an “insurance policy against financial disaster.”

Miller supported cryptocurrency in support of those who are caught up in conflict and still have access to financial products. Miller appeared on the May 24 episode of “Richer Wiser Happier”. Miller used as an example the fall of Afghanistan’s financial infrastructure after the US withdrawal in Aug 2021.

“When the US pulled out Afghanistan, Western Union stopped sending or receiving remittances to Afghanistan. But, if you had Bitcoin, everything was fine. Your Bitcoin is available. If you have a smartphone, you can send it anywhere in the world.

Miller stated that examples of how crypto can be used as insurance are not “all or nothing”. He also noted the performance of Bitcoin during the initial stages of the pandemic, and the Federal Reserve’s response to it.

“The mortgage rates […] bitcoin functioned perfectly when the Fed intervened and began to bail out and gunned down the money supply. Bitcoin was not subject to ransom. The system worked without the Fed or any interference. Everyone got their Bitcoin and the price was adjusted. Then, when Bitcoiners realized that there would be inflation, Bitcoin surged to the top.

He said, “It’s an Insurance Policy, the way that I see it.”

Miller also refuted Warren Buffett’s recent criticisms of Bitcoin. The billionaire investor once said that it “doesn’t produce anything” but that he “wouldn’t take” all Bitcoin in the world for $25.

He said that Bitcoin was a non-productive asset, and therefore cannot value it. That’s fair enough. It’s fair enough. So ignore it.”

Later, he added that the objective of investing was not to have productive assets. It is to make money.

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Miller is well-known for his portfolio that beat the returns of S&P 500 index for 15 consecutive years, from 1991 to 2005. Miller is also well-known for his support of Bitcoin. He invested half of his net wealth in the asset in January.

Miller answered a question about whether he still owned that position. He said that around 40% to 50% of his money was in Amazon stock, and that his Bitcoin holdings were “about equal as Amazon”. He also stated that 80% of Miller’s net worth is split among the two assets.

Miller also spoke about the Luna-based tattoo that Mike Novogratz got on his arm after the fall of Terra’s ecosystem collapse.

“I was sent a photo of Mike Novogratz, where he had a Luna tattoo on one of his arms. It shows a wolf howling at a moon. It’s almost like you should have a Bitcoin tattoo on your arm. It would be more durable than the one that was there.

Novogratz stated that the tattoo would be a constant reminder that venture investing requires humility, as Galaxy Digital suffered a $300 million loss in its Luna investments.

Miller stated, “I felt sorry for him when he saw some story about him going from something like $10billion to $2billion.”