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Billionaire investor Bill Miller, founder and chairman of investment firm Miller Value Partners, has suggested that the current collapse of Russia’s fiat currency, the ruble, is “very optimistic for bitcoin.” The reason for this is that the value of the flagship cryptocurrency is determined by global supply and demand. Thanks to this, you can see how other countries decide to use it as a reserve asset.
Speaking to CNBC, Miller, who is a portfolio manager at Miller Value Partners Opportunity Equity and Income Strategy mutual funds, noted that Russia currently holds 16% of its $640 billion in reserves in US dollars and 32% in euros, which means that almost 50% of their reserves are “controlled by people who want to harm them.”
Last week, Russian President Vladimir Putin announced a “special military operation” in Ukraine. The move prompted a reaction from Western leaders that led to economic sanctions.
These sanctions have sent Russia’s fiat currency, the ruble, to an all-time low after losing more than 30% of its value against the dollar. While its MOEX index dropped to 40% before trading on the Moscow Stock Exchange was halted. Shares in Russia’s biggest lender Sberbank plunged 95% on the London Stock Exchange amid “anomalous cash outflows”.
Miller added that from Russia’s point of view, they are not in the best position, since 22% of their reserves in gold is “the only part of their reserves that other countries cannot control.” The legendary investor added that other countries with non-reserve currencies, of which he estimates there are “about a hundred,” could now consider holding something in their reserves that other countries cannot use against them and cannot use against them. inflation can affect. He added:
So I think that’s very optimistic, especially for bitcoin.
The investor added that the rest of the cryptocurrency market is different from BTC as “the rest of the cryptocurrencies should be seen as adventurous investments because they are all trying to solve other problems.”
Miller has been bullish on BTC for some time now. In October 2021, he supported bitcoin but was less optimistic about altcoin survival. The investor said that bitcoin is “insurance against financial disaster.”
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