Bitcoin (BTC) is better than gold as a store of value and it’s just starting to go mainstream, says Bill Miller

After setting a new all-time high above $64,000 last week, Bitcoin (BTC) suddenly plunged by around 20 percent before stabilizing. The sudden correction spawned speculations that the crypto, which is trading at $55,412 at the time of writing based on Coinmarketcap data, might be a bubble ready to burst.

However, longtime value investor Bill Miller disagrees with such viewpoint and even argued that Bitcoin is just starting to get mainstream. In an interview on CNBC’s “The Exchange,” the investor also said that BTC is even better the gold as a store of value.

With the recent plunge, Miller was asked if he thinks there is still an upside to Bitcoin. “There are many different ways to look at Bitcoin,” the founder and chief investment officer of Miller Value Partners told CNBC. “The simplest one is just supply and demand.”

Miller pointed out that with demand outpacing supply by a large margin, the only way for Bitcoin to go is up. “You mentioned the mainstreaming of it and the institutional acceptance of it,” he explained. “Supply [of bitcoin] is growing 2% a year and demand is growing faster. That’s all you really need to know, and that means it’s going higher.”

He also addressed concerns about the recent drop of around 20 percent to BTC’s price. “It’s going to have these kinds of volatile days,” Miller said. “It was down 20 percent peak to trough over the weekend.”

But such sudden price movement is not unusual to the crypto at all. “Even bank then during the bubble, it went down 20 percent on five different occasions,” Miller explained. “With Bitcoin, volatility is the price you pay for performance.”

Miller also clarified that BTC is not a bubble. “I don’t think this is a bubble at all in Bitcoin,” he added. “I think this is now the beginning of the mainstreaming of it.”

The investor also likened Bitcoin to digital gold, which is better than the actual precious metal. “Gold is about a $10 trillion asset category and bitcoin is $1 trillion, and it’s infinitely divisible or almost so,” he said. “It’s easily transportable and can be sent anywhere in the world if you have a smartphone so it’s a much better version, as a store of value than gold.”

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