Legendary hedge fund investor Bill Miller is betting big on cryptocurrency as a “bitcoin observer,” with his firm betting nearly half of its assets in the digital currency.
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“What I observed with bitcoin is that it’s following a very time-honored path of disruptive innovation going all the way back to the printing press, railroad, electricity, radio in the 1920s, biotech, the internet,” Miller said during an exclusive interview with FOX Business’ Charles Payne.
Miller, the chairman and chief investment officer at Miller Valued Partners, said his firm’s MVP1 hedge fund initially invested a 5% position in bitcoin before expanding the investment. Some people on Wall Street are concerned that the value of digital currencies is a bubble waiting to burst.
“Bubbles are necessary to bring capital into the market to see if these innovations are actually going to stand,” he said.
As economic optimism continues to run high spurred by Republican tax reform legislation that passed in late December, the Dow Jones Industrial Average is suffering its worst month in two years.
The renewed volatility in the markets has investors concerned about what the Federal Reserve will do about interest rates.
Miller, who is attending the Forbes•SHOOK Top Advisors Summit in Las Vegas this week, said Wall Street was due for a 10% correction which is part of the normal flow of the markets. Wall Street is always concerned during any given trading day, particularly in a market selloff.
“The economy is fine, inflation is low, interest rates are low, corporate profitability is fine. So, this is just psychology washing back and forth,” he said.