"Not owning any Bitcoin has been a massive mistake24 Jan 2021 15:52
Miller is the Founder, Chairman, and Chief Investment Officer of investment firm Miller Value Partners, as well as the portfolio manager of firm’s mutual funds “Opportunity Equity” and “Income Strategy”.
Before starting Miller Value Partners, Bill Miller and Ernie Kiehne founded Legg Mason Capital Management, and they worked as portfolio managers of the Legg Mason Capital Management Value Trust from its inception in 1982.
It is important to point out that Miller is not your average fund manager. As CNBC noted back in June 2018, Miller’s 15-year streak (through 2005) of beating the is S&P 500 is still a benchmark no active manager can touch.”
Next, Miller addressed some of the common criticisms of Bitcoin, and provided a very strong defense.
For example, in the case of the claim by some critics that Bitcoin is nothing but a Ponzi scheme, Miller wrote:
“This is easiest to address, because it demonstrates a lack of understanding of both Bitcoin and Ponzi schemes. Bitcoin is quite the opposite of a Ponzi scheme, which involves a central criminal extracting value from current investors using new investors’ money to fund redemptions while falsifying stated returns.
“There is no middleman in Bitcoin – only a network of users governed by an established protocol. Indeed, the value of the network grows with its aggregate usage, but users share in the value growth as new users adopt the technology. The market’s deep liquidity and supporting infrastructure leave no doubt that the price and stated returns of Bitcoin are as real as it gets.“
As for the criticism that even if works as well as promised by Satoshi, sooner or later it will get banned by regulators, Miller wrote:
“It has worked for twelve years with little regulatory interference under multiple administrations. In fact, the regulatory outlook for Bitcoin in the US has never been brighter, which may explain why so many institutions are now getting involved. In 2014, a senior member of the Federal Reserve Bank of Saint Louis studied Bitcoin and concluded that, ‘enforcing an outright ban is close to impossible…well-run central banks should welcome the emerging competition.’…
“The new head of the SEC, Gary Gensler, is a Bitcoin fan. While we believe the next decade will see adoption grow at a much faster rate than it did during Bitcoin’s first decade, it is unlikely that Bitcoin will work so quickly that it becomes disruptive to long-standing reserve currencies, and to the extent it does, it will be worth a lot more.“
Finally, Miller pointed that for this fund, he had invested in Bitcoin by buying “convertible securities tied to Bitcoin.” That convertible security is MicroStrategy’s “0.750% Convertible Senior Notes Due 2025” (MicroStrategy announced the closing of this offering, from which it raised $650 million, on 11 December 2020).
Https://www.cryptoglobe.com/latest/2021/01/legendary-investor-says-not-owning-any-bitcoin-has-been-a-massive-mistake/
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