Bill Miller Explains Why Bitcoin Is Still Undervalued
Bill Miller IV, chairman and CIO of Miller Value Partners, has explained why bitcoin is undervalued despite the cryptocurrency’s recent highs. He emphasized bitcoin’s potential as a revolutionary monetary system superior to fiat currencies, which are subject to human control and debasement. Miller believes bitcoin’s market cap has room for substantial growth.
‘I Believe Bitcoin Today Is Still Significantly Undervalued’
Bill Miller IV, chairman and CIO of Miller Value Partners and a long-time bitcoin investor, explained in a blog post on Monday why he is still betting on bitcoin. The executive wrote:
Despite bitcoin recently hitting new highs against every fiat currency, I believe bitcoin today is still significantly undervalued and that the world is likely in the early stages of a secular shift around how humans think about capital and its governance.
He explained that money serves as an accountability system, but human control leads to errors and influence, causing currency devaluation as politicians and regulators create new units. He noted that Lyn Alden’s “Broken Money” shows that superior monetary technologies prevail, as people seek to preserve or grow their financial options.
According to Miller, determining bitcoin’s intrinsic value is challenging, but he believes it is worth significantly more than its current $1.5 trillion market capitalization, especially in a global fiat system nearing one quadrillion dollars. He noted that bitcoin represents only a fraction of the world’s capital market, yet its blockchain is more accountable and secure than the best fiat systems.
The chairman of Miller Value Partners opined:
Unlike anything we have seen before, bitcoin is a true technological breakthrough.
He explained that with bitcoin, “there now exists an effectively unalterable, automated and transparent global ledger network with decentralized governance enabling the transfer of property rights through time and space without human permission or the possibility of confiscation.”
Miller concluded that as a groundbreaking technology, Bitcoin is subject to unforeseen developments and changes in value. While it may become worthless to some, he says ignoring the cryptocurrency over the next decade will likely prove unwise, as it has in the past.
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