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Legacy investor, fund manager, and philanthropist bill miller believes that the financial penalties imposed on Russia could cause the price of bitcoin to skyrocket. He stressed that gold is the only reserve asset the largest country by controlling the continental mass on its own, which means btc could gain traction in the coming days.
The BTC surge after the ruble crash.
The military conflict in Ukraine has taken the financial world by storm. NATO and the EU have declared economic warfare against the Putin regime. The United States, the United Kingdom, Germany and many others have cut their monetary connection to Russia and have rapidly excluded the many Russian banks from the main payment system.
As a result of those sanctions, the ruble plummeted by over 25%, while Russian citizens started looking for alternative financial instruments to preserve their savings. Bitcoin trading volumes in the region spiked to record levels.
In a recent interview for cnbc, the former chairman of the legg mason capital – bill miller – underlined that Russia retains 16% of its reserves in dollars and 32% in euros. These assets are managed by "persons who want to harm them", he added, as the only part of their reserves, that other nations are unable to control, is gold (22 per cent). According to Miller, these measures are a "highly bullish" sign for Bitcoin.
“They have almost 50% of their reserves in currencies that are controlled by people who want to do them harm…they have 22% in gold that is the only part of their reserve that other countries can’t control,” says Bill Miller on Russia. “It’s very bullish for #bitcoin.” pic.twitter.com/zWihekfeyk
— Squawk Box (@SquawkCNBC) March 2, 2022
He also stressed the limited offer of BTC, which makes it a hedge against inflation. Commenting on the altcoins, he said they are very different than the primary cryptocurrency, and investors should consider them as "risk assets."
Miller's Bitcoin position.
Despite his skeptical BTC opinion in the past, the American has become an ardent supporter of the primary cryptocurrency recently.
In May last year, he argued that investing in it is safe even during price drops. In fact, traders should find it more appealing when the value is down:
"If I liked something at higher prices, it's a sure bet I'll like it even more at lower prices."
Several months later, he made a somewhat interesting comparison between bitcoin and gold. In his opinion, the digital asset looks like the Ferrari luxury sports car, while the precious metal is outdated – like a horse-and-buggy.
Earlier this year, the legacy investor admitted he had allocated 50% of his portfolio to bitcoin.
