Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Billionaire investor Bill Miller thinks Bitcoin (CRYPTO: BTC) remains “significantly undervalued” despite its recent performance against fiat currencies.
What Happened: Miller’s insights come from his latest publication, where he revisits his long-standing belief in the transformative potential of Bitcoin.
He first expressed his optimism about Bitcoin in a 2015 piece titled "A Value Investor's Case for…Bitcoin?!" and continues to see immense untapped potential in the digital asset.
“Despite Bitcoin recently hitting new highs against every fiat currency, I believe Bitcoin today is still significantly undervalued,” he remarked.
Miller suggests that the world is in the early stages of a profound shift in how capital and its governance are perceived globally.
Highlighting the inherent issues within traditional monetary systems, Miller noted, “The challenge with current monetary systems is that humans control them, and human judgement is subject to error and influence.”
He underscores the point that political and regulatory maneuvers often lead to currency debasement, diminishing the value of money over time.
According to Miller, Bitcoin offers a compelling alternative, free from the pitfalls of human intervention and manipulation.
In his analysis, Miller references Lyn Alden‘s book “Broken Money,” which argues that the most efficient monetary technologies ultimately prevail.
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He draws parallels between Bitcoin and other revolutionary technologies, such as those developed by NVIDIA, Google, and Meta, which have drastically outperformed other stocks.
“Humans are notoriously bad at contextualizing the relevance and potential of new technologies,” Miller said, emphasizing that Bitcoin represents a similar epistemic breakthrough.
“Bitcoin is a true technological breakthrough,” Miller stated, “as there now exists an effectively unalterable, automated and transparent global ledger network with decentralized governance.”
He believes that this decentralized nature of Bitcoin enables a secure and accountable system for transferring property rights, independent of human intervention or the possibility of confiscation.
Discussing Bitcoin’s intrinsic value, Miller expressed, “My view is that it's many multiples of its current $1.5 trillion market capitalization in a world of fiat governance systems fast approaching one quadrillion dollars of capital.”
He argues that Bitcoin, despite its relatively small share of the global capital market, offers a superior monetary governance system compared to traditional fiat currencies.
Miller concludes his analysis with a cautionary note: “Continuing to ignore Bitcoin will serve those who do it over the next decade as well as it has over the past one – not well.”
What’s Next: As the world adapts to new financial paradigms, Miller’s endorsement of Bitcoin underscores the ongoing debate about the role of digital assets in the global economy.
For more insights into the future of digital assets, industry stakeholders are encouraged to attend Benzinga’s Future of Digital Assets event on Nov. 19, where these topics will be explored in depth by experts and thought leaders.
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