Bitcoin has excellent upside potential as a type of “digital gold,” according to Miller Opportunity Trust, a value-focused fund run by renowned investor Bill Miller.
According to a new investor report, the firm saw Bitcoin’s drop in May as a chance to buy the commodity at a discount through the Grayscale Bitcoin Trust (GBTC).
Given how small BTC’s market cap is compared to gold’s, the $2.8 billion fund claims that Bitcoin, as a sort of digital gold, should have significant upside potential.
Miller Opportunity Trust said Bitcoin is the digital gold, and its potential is still huge, when discussing its intention to obtain exposure to Bitcoin through the Grayscale Bitcoin Trust (GBTC).
Gold has a market capitalization of over $11 trillion, while Bitcoin only has a market capitalization of roughly $11 trillion, according to the Bill Miller fund, which believes Bitcoin still has a long way to go to catch up to Gold.
According to the firm, we are still in the early stages of an ongoing adoption curve. It warned that Bitcoin would be volatile, but that the coin’s risk-reward ratio is appealing.
Bill Miller, a seasoned investor, has long been a supporter of bitcoin. He described the price of bitcoin falling from $58K to below $34K in May as “very typical.”
The pullback, according to Miller, was “exactly in line with swings we’ve seen many times in bitcoin.” He disagreed with other analysts in April when they said bitcoin was in a bubble. Instead, he claimed that bitcoin was becoming popular as demand outpaced supply.