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Veteran investor Bill Miller compared bitcoin to an insurance policy, noting that it may lack intrinsic value but methodically come in handy in case of disaster.
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Miller said he still holds a significant portion of bitcoin in his portfolio.
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BTC price climbed above $45,000 on Thursday, jumping above resistance amid high volatility in the market.
Bitcoin is what investors need to protect themselves from financial catastrophe, legendary investor Bill Miller said in an interview with CNBC.
According to the fund manager, who disclosed in January that he holds a significant portion of his personal wealth in bitcoin, the cryptocurrency acts “like an insurance policy.”
Explaining his analogy, the famous investor said CNBC that people go for insurance even when they know the policies don’t have intrinsic value.
It is precisely this factor (lack of intrinsic value) that makes people want to get insurance, said the former chief investment officer of Legg Mason Capital Management Value Trust. Not because they want to see their property destroyed or expect an accident to happen, but because insurance always comes in handy in case of a disaster.
,Bitcoin is insurance against financial disaster” he explained in the comments referenced by insider.
Miller also commented on his crypto portfolio, noting that his previous allocation in BTC increased sharply during the bull market at the peak of bitcoin in November. Although holdings were impacted during the recent market downturn, the investor said he still holds a “larger position”.
On the overall adoption of cryptocurrencies, the investor says the trend will see major banks, endowments and pension funds adding bitcoin to their balance sheets. According to him, this move by KPMG Canada is the beginning of a big change.
At the time of writing, bitcoin is trading at around $45,350, up nearly 3% in the past 24 hours and over 22% in the past week. Today’s market action saw rapid volatility in the cryptocurrency as markets reacted to the latest inflation data from the US.
The race to intraday highs above $45,600 includes a sharp decline below $44,000, but analysts believe that the crypto bull market is not over yet.