Benzinga | Jan 10, 2022 08:32AM EST

Why Legendary Investor Bill Miller Has 50% Of His Portfolio In Bitcoin

Legendary investor Bill Miller is betting big on Bitcoin (CRYPTO: BTC) and other cryptocurrencies.

What Happened: In a recent interview with Wealthtrack, Miller explained why 50% of his personal portfolio is in Bitcoin and a few other Bitcoin-related investments.

"I'd say it's a combination of things -- it would have to be, to allow something to get that big a part of your portfolio [sic]," said the founder and CIO of Miller Value Partners.

One of the reasons for Miller's high degree of confidence in the apex cryptocurrency is the notion that Bitcoin is equivalent to "digital gold."

"Only 21 million Bitcoin can ever be created...it doesn't matter if Bitcoin is $100,000 or $20 million, there's only going to be that many of them. So, all you have to really believe is that the demand for Bitcoin will grow faster than 1.5% over the next number of years and the price inexorably will go up," he said.

Miller also explained why he was particularly bullish on Bitcoin as opposed to gold, which is known to be the more conventional "store of value" asset class.

"In 5000 years, it [gold] has gone from a nickel to $1850, and in 10 years, Bitcoin has gone from a nickel to $57,000. So why would I own gold? Especially since gold in the last 10 years has gone down. In the last 10 years, Bitcoin is the best performing asset category in the world."

The investor has also put his money into several Bitcoin-related stocks, such as Bitcoin mining company Stronghold Digital Mining Inc (NASDAQ:SDIG) and MicroStrategy Incorporated (NASDAQ:MSTR). Miller said that a large part of his personal portfolio, aside from Bitcoin-related investments, is in Amazon.com, Inc (NASDAQ:AMZN).

Price Action: As of Monday morning, Bitcoin was trading at $40,864.98, dropping 2.02% in the last 24 hours. The market-leading digital asset is down 13.63% over the last seven days.

Related Link: Will Bitcoin Bottom At $38,000?