Legendary investor Bill Miller lauded bitcoin(BTC) and said he sees bitcoin surge 100% in 2021. In his interview with CNBC, Miller explained that it’s advisable for investors to hold 1-2% in bitcoin and not cash. According to Miller, cash is a “guaranteed loser” and will be losing at least 2% in value due to inflation.  

The founder and Chief Investment Officer of Miller Value Partners said, “It’s more a risk management strategy than anything else to have a little bit of money in bitcoin.” Miller also noted that bitcoin is opposite to traditional investment instruments as it gets less risky the higher value it gets. 

“One of the things that’s interesting about bitcoin is that it gets less risky the higher it goes, and that’s the opposite of what happens with most stocks,” Miller said. 

Talking about bitcoin’s future Miller said the largest cryptocurrency will surge to about 100% in the coming year. “I think that bitcoin… should probably be up 50% to 100% from here in the next 12 to 18 months. And if you were to ask me the over or under, I would definitely say it would be much more likely to be higher than lower.”

Miller appeared on CNBC for an interview a few days after he published his market letter where he lauded bitcoin. In his letter, Miller had said bitcoin is “best thought of as digital gold” but different from gold as it holds several advantages over metals. 

Miller also took a dig at Warren Buffet’s stand on bitcoin. Reportedly Buffet called bitcoin ‘rat poison’ on which Miller said, “Warren Buffett famously called bitcoin ‘rat poison’. He may well be right. Bitcoin could be rat poison, and the rat could be cash.” 

As of the time of writing, the data shows Warren Buffet’s Berkshire Hathaway’s market cap to be standing at $540 billion. On the other hand, bitcoin which has been soaring high has a market cap of $716 billion. 

Bitcoin’s more than 300% rally in 2020 is already extended by another 40% gain in 2021 so far. According to Miller, the price of these returns is worth the volatility it thrives in. In the same interview with CNBC Miller noted, “You have to expect that it’s going to be very, very volatile.  If you can’t take the volatility, you probably shouldn’t own it. But its volatility is the price you pay for its performance.” 

Bill Miller who serves on the investment committee of John Hopkins University said that because of its “asymmetric properties everybody is going to want to own at least some bitcoin.” 

Bitcoin has doubled in value over the last month and has risen over 40% in 2021. On one hand, there are some bitcoin investors that want to cash in their profits as the price inflates. On the other hand, there are investors who are still waiting for a correction so that they can get the opportunity to buy bitcoin at a deflated rate.