‘Financial Catastrophe’ – Legendary Investor Reveals Shocking 2022 Bitcoin Prediction Amid Wild Crypto Price Swings

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Bitcoin and cryptocurrencies have had a rocky start to 2022 – with some predicting more pain could be on the way – after booming last year.

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The price of bitcoin, after starting the year at nearly $50,000 per bitcoin, fell to $32,000 in January. Although bitcoin price has recovered somewhat, it remains under pressure as crypto investors prepare for a massive $10 trillion earthquake.

Now, legendary value investor Bill Miller has revealed his “very important” stance on bitcoin, saying he sees bitcoin as insurance against potential “financial catastrophe”.

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“It’s like an insurance policy,” said the chairman and chief investment officer of Miller Value Partners. CNBC in an interview this week, adding that he thinks publicly traded bitcoin miners, those who use powerful computers to secure the bitcoin blockchain in exchange for freshly minted coins, are trading at very attractive valuations.

“Bitcoin is insurance against financial disasters like we see in Lebanon, or Afghanistan, or a lot of these other countries where we saw (this) at the time of the pandemic.”

Last month, the Lebanese government presented a plan to tackle the country’s long-standing financial crisis, including a 93% devaluation of the Lebanese pound, it was reported by Reuters. Meanwhile, cash shortages have exacerbated Afghanistan’s deepening economic crisis and soaring inflation after the Taliban took control and the former government collapsed last summer. . Globally, inflation has surged as lockdowns put in place to curb the Covid-19 pandemic have come to an end and economies remain awash with pandemic-era stimulus cash.

“Insurance policies have no intrinsic value,” Miller said. “In fact, you want them to have no intrinsic value. You don’t want your house to burn down or have a terrible accident, but you pay insurance every year in case that happens.”

Miller also clarified comments made in January that were interpreted to mean he had invested half of his personal wealth in bitcoin and other cryptocurrencies. He said he only had a few percent of his net worth in bitcoin, which then became half of his total fortune as the price rose.

“Now it’s less than that, because [the bitcoin price is] down by half since November [but] it is still a very big position”, he added, without revealing precise figures.

Bitcoin’s reputation as a safe-haven asset and inflation hedge has grown over the past few years along with the price of bitcoin, with some expecting it to eventually replace gold. In 2020, renowned investor Paul Tudor Jones announced that he was buying bitcoin, calling it “the fastest horse to beat inflation”.

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“Serious geopolitical risks over the past few weeks demonstrate real-world use cases for bitcoin and cryptocurrencies in extremely volatile times,” said Nigel Green, chief executive of financial advisory group deVere, in comments by post. electronics, pointing to research showing that bitcoin was donated to Ukrainian non-governmental organizations and volunteer groups, used to equip the Ukrainian army with military and medical supplies as Russian forces massed on its border, and a decision taken by US fundraising website GoFundMe to remove donation campaign for Canada Freedom Convoy truckers protest and return millions of dollars to donors.

“Bitcoin is widely regarded as a valuable store of value and a medium of exchange,” added Green, who expects the price of bitcoin to climb this year.

“But this week’s geopolitical issues have tested its other core values ​​of being a viable, decentralized, tamper-proof, and non-confiscable monetary system. These real-world use cases will further increase bitcoin’s mass adoption and lead to higher prices this year.”

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