Longtime value investor Bill Miller told CNBC on Tuesday he believes bitcoin is firmly entering into the mainstream, contending the cryptocurrency’s rally in recent months is significantly different from its 2017 ascension and subsequent plunge.
In an interview on “The Exchange,” the founder and chief investment officer of Miller Value Partners said he believes bitcoin still has room to run to the upside. The world’s largest cryptocurrency by market value traded around $55,800 on Tuesday afternoon. It’s already rallied around 90% year to date, according to Coindesk.
“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,” said Miller, who first started to buy bitcoin around 2014 or 2015 at an average cost of $350 per coin.
However, he acknowledged the historically volatile bitcoin will likely continue to experience sharp price swings, like the one that transpired over the weekend, knocking the digital coin below $60,000. Last week, it reached an all-time high of almost $65,000.
Miller said the rally in 2017 was, in fact, a bubble that ultimately burst. It’s different now, he argued, saying, “I don’t think this is a bubble at all in bitcoin. I think this is now the beginning of a mainstreaming of it.”
Bitcoin saw its price soar in 2017, reaching what was then a record high of nearly $20,000 that December. It went on to fall sharply in the following months,