#1285 Bill Miller IV | Bitcoin Will Dominate Wall Street In 2024
Dec 18, 2023
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Bill Miller IV, Portfolio Manager at Miller Value Partners, discusses the bitcoin market, ETFs, regulation, halving, stablecoins, and a non-bitcoin yield focus fund. They also talk about the importance of state planning, risks and opportunities of investing in bitcoin, Bitcoin ETFs and the market impact, the Miller family's approach to concentration in investments, and building a platform for active management and outperforming the markets.
Bitcoin's limited supply, adoption, and potential as collateral make it an attractive investment.
Bitcoin provides transparency, immutability, and ownership without dependence on third parties, giving individuals control over their wealth.
Deep dives
Bitcoin Market and Institutional Interest
The Bitcoin market has seen exuberance with a 150-160% price increase this year, although it is still down around 40%. Traditional financial investors are showing awareness and interest in Bitcoin, with some owning it personally. There is a hesitancy and fear of regulation, but overall, the trend of global acceptance and adoption of Bitcoin is positive. Bitcoin's limited supply, adoption, and potential as collateral make it an attractive investment. The increasing value and ecosystem around Bitcoin open up investment opportunities such as Bitcoin spot, futures, public miners, and funds.
Bitcoin as Store of Value and Medium of Exchange
Bitcoin's potential as a store of value and medium of exchange are both valuable. Bitcoin provides transparency, immutability, and ownership without dependence on third parties, giving individuals control over their wealth. The prevailing description problem surrounding Bitcoin often leads to misinterpretations and misunderstandings. As more assets get priced in Bitcoin, it could eventually become a medium of exchange. The Lightning Network shows potential as a scalable solution for Bitcoin transactions, especially for machines and automated systems.
Bitcoin Regulation and US Market Reactions
Bitcoin faces regulatory challenges, especially in the US, where clarity is needed. However, the trend worldwide is positive, with countries like El Salvador, Argentina, Germany, and Japan showing enthusiasm and pro-Bitcoin sentiment. While potential concerns exist about companies moving abroad due to regulatory uncertainties, it seems that most companies, including Coinbase, are hesitant to leave the US unless absolutely necessary. The hope is that the US will understand the importance of technological innovation and foster a supportive environment for Bitcoin.
Rise of Stablecoins and Bitcoin ETFs
Stablecoins, being another form of fiat currency with central entity backing, are not considered as significant as Bitcoin since they lack the same decentralized benefits. Moreover, Bitcoin could become a stablecoin itself once adoption broadens and volatility decreases. The potential approval of Bitcoin ETFs could lead to an influx of capital into the market, although short-term market dynamics could cause fluctuations. ETF acceptance would be a significant long-term tailwind for Bitcoin's growth.
Bill Miller IV serves as CIO and Chairman at Miller Value Partners, he also serves as a Portfolio Manager. In this conversation, we talk about the bitcoin market, ETF’s, miners, regulation, halving, stablecoins, artificial intelligence, and a non-bitcoin yield focus fund that Bill also manages.
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