​Bill Miller criticized Warren Buffett’s stance on bitcoin

What’s new? Bill Miller, chairman at Miller Value Partners, said investors should ignore what Berkshire Hathaway CEO Warren Buffett said about bitcoin. Miller explained that Buffett's strategy is to invest in productive assets. Because digital currency is not such an investment, the founder of Berkshire Hathaway cannot value it. Miller believes that “the objective of investing is not to own productive assets, the objective is to make money” He talked about this on the Richer, Wiser, Happier podcast.

The Richer, Wiser, Happier Podcast

What else did Miller say? The investor called bitcoin “the only economic unit in the world whose supply is independent of demand”. Miller noted that if the price of gold soars, the supply will increase, whereas bitcoin's supply is fixed. He sees cryptocurrency as an insurance policy against financial catastrophe.

Who is Bill Miller? An American investor and businessman, he was formerly chairman and chief investment officer of asset management firm Legg Mason Capital Management. In 2019, Miller's hedge fund Miller Value Partners was one of the most profitable in history. As of March 31, 2022, Miller Value Partners had $2,7 billion in assets under management.

What happened before? In January, Miller announced that he had converted half of all his savings into digital assets. He considers bitcoin to be the most promising asset. The coin's supply is independent of demand, making it unique in the global financial market, Miller said.

In May, he said he had sold some of his bitcoins. According to the investor, he did so to “meet margin calls.” Miller noted that the price of bitcoin could continue to decline and fall by another half.

Buffett on bitcoin. On May 2, the billionaire said he did not see any value in bitcoin because the asset does not produce anything. The head of Berkshire Hathaway stressed that he was more confident in real estate or industrial assets. However, he noted that having some cryptocurrencies in a portfolio may provide an advantage if used for lending or as collateral, but they are still “highly speculative and have not broken into the mainstream like bitcoin.”

See GetBlock Magazine's article on how prominent businessmen criticize cryptocurrencies.