Billionaire and founder of Miller Value Partners Bill Miller said he considers bitcoin “an insurance policy against financial disaster.”
Miller noted that cryptocurrencies act as an important remedy for those who find themselves without access to financial products. He cited the collapse of financial infrastructure in Afghanistan after the U.S. leaves in August 2021 as an example.
“When the U.S. left Afghanistan, Western Union stopped sending money orders there or accepting them from Afghanistan, but if you had bitcoin, you were fine. Your bitcoin is there. You can send it to anybody in the world if you have a phone,” he noted.
Miller also noted that many people use BTC as insurance against inflation.
“When the Fed stepped in and started reducing the money supply and bailing out, essentially, mortgage rates … Bitcoin functioned fine. The system functioned without the Fed and without any intervention. Everyone got their bitcoin, the price was adjusted, and then when bitcoiners realized, “Wait, we’re going to have inflation in the future,” bitcoin skyrocketed. I look at it as an insurance policy,” he added.
Miller also condemned Warren Buffett’s recent criticism of bitcoin.
“He said that bitcoin is a nonproductive asset and therefore he can’t value it. Fair enough. If the only thing you think you can value is a productive asset, no one is forcing you to buy it, right? So ignore it. The purpose of investing is not to own productive assets, it’s to make money,” he concluded.