Bitcoin's Rally Not A Bubble, It's A Beginning Of Mainstream, Says Investor Bill Miller

Bill Miller, long-term value investor and chairman of Miller Value Partners, believes that this Bitcoin BTC/USD rally is significantly different from the one observed in 2017.

What Happened: “I don’t think this is a bubble at all in bitcoin. I think this is now the beginning of a mainstreaming of it,” he said in an interview with CNBC.

Miller went on to explain that while the market-leading digital asset will likely continue to be volatile in its price swings, there is still room for further upside.

“Supply [of bitcoin] is growing 2% a year and demand is growing faster. That’s all you really need to know, and that means it’s going higher,” he said.

Why It Matters: Miller first invested in Bitcoin in 2014 and 2015, acquiring the cryptocurrency for as little as $350 per coin on average.

Bitcoin is currently trading roughly 156 times that amount at $54,600, down from its all-time high of $64,500 seen last week.

Over the course of one year, it has returned close to 900%, and this year’s Bitcoin rally has dwarfed the bull run of 2017.

Miller believes that the market conditions in 2017 resembled a bubble that did ultimately burst, but this time things are different.

See also: JPMorgan Analyst Believes Bitcoin Needs To Regain $60,000 Level Fast Otherwise It'll Collapse

“Even back then, during the bubble, it went down 20% on five different occasions, so with Bitcoin, volatility is the price you pay for performance,” he said.

Now that institutional adoption of the leading cryptocurrency has taken shape on a much larger scale, with companies like Tesla Inc (NASDAQ: TSLA) adding $1.5 billion Bitcoin to its balance sheet, the crypto environment is perceivably different.