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Gauging the proper value of Bitcoin is anything but easy. Even though the price has been moving up quite a bit over the past few days, there is plenty of room for future speculation. Even some of the bigger Bitcoin investors acknowledge the Bitcoin price may drop to 0 at some point. It is unlikely things will head in that direction, but the possibility shouldn’t be dismissed either.
No one knows what the true value of one Bitcoin really should be. The free market claims it is over $6,000. Others think this is a bubble waiting to burst. It is certainly possible the latter scenario may come true in the end. Bill Miller, one of the bigger Bitcoin investors, acknowledges these possibilities as well. While 30% of his hedge fund’s wealth is in Bitcoin right now, the decision may not pan out in the end. It remains to be seen how the Bitcoin price evolves in this regard.
Bill Miller is Realistic as far as Bitcoin is Concerned
The people who bought BTC at a cheap price will be quite happy right now. Bill Miller bought most of his BTC at $350. It seems ages since we saw such a low Bitcoin price. Then again, the price was that low around two years ago. Compared to the current Bitcoin price, Bill Miller has made a solid profit already. His hedge fund is also up by 72.5% in recent months, as the exposure to BTC was introduced a lot later.
Even though things look good, nothing has been set in stone just yet. Bill Miller explains the Bitcoin price may drop to $0 for all we know. If and when that were to happen, remains to be seen. For all intents and purposes, Bitcoin is an “experiment”. It is certainly doing well so far, but things can change. We have seen several steep corrections already. Moreover, governments and banks continue to oppose cryptocurrency whenever possible.
For now, Bill Miller still believes in Bitcoin. However, he states how there is a “nontrivial chance Bitcoin goes to zero”. Every day this doesn’t happen, Bitcoin’s chance of success increases. In fact, we see more money flowing into cryptocurrency every single month. It will be interesting to see how this affects the Bitcoin price moving forward. For now, things are looking pretty solid. Demand can dry up overnight, yet we have to hope that will never happen.
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