Bitcoin (BTC) gets â€œless risky the higher it goes,â€� value investor Bill Miller said on CNBCâ€™s â€œThe Exchangeâ€� program.
What Happened: Miller confirmed he was as excited about Bitcoin at its all-time high $41,000 levels as he was when the apex cryptocurrency was trading just under $15,000 in early November.
The co-founder and chairman of Miller Value Partners told CNBCâ€™s Kelly Evans Saturday that Bitcoin is the opposite of most stocks since it gets less risky as it goes higher because â€œBitcoin is so early in the adoption cycle.â€�
â€œEven though [the Office of the Comptroller of the Currency] will allow all the big banks and investment banks to custody or to buy and sell bitcoin, you canâ€™t do that with any of them,â€� said Miller.
Bitcoin is a â€œsupply and demand story,â€� as per the famed investor. Miller said 900 bitcoins are created every day but it is estimated that the customers of Paypal Holdings Inc (NASDAQ: PYPL) and Square Inc (NYSE: SQ) are buying all of them.
Why It Matters: Miller highlighted the Fedâ€™s decision to pin interest rates to 0% for the foreseeable future and said that the inflation rate of 2% is a reason enough for institutions and individuals to keep 1-2% of their savings in Bitcoin.
â€œYou cannot cut the head of the snake here, itâ€™s decentralized,â€� remarked Miller on being questioned on the regulatory risks surrounding Bitcoin.
Price Action: Bitcoin traded 14.17% lower at $34,905.43 at press time. On Friday, Grayscale Bitcoin Trust (OTC: GBTC) closed 1.22% lower at $44.42.
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