Recently, in an interview with Bloomberg, the investor and fund manager Bill Miller shared his opinions about Bitcoin and the other currencies. He showed his clear inclination toward BTC saying that the other digital currencies are worthless.
There are about 1,600 cryptocurencies out there, and I would say that most of them are probably worthless.
The claim may not be the opinion of the general public, as the volumes of Ethereum saw a sudden jump in the market and surpassed Bitcoin . Although the rise and drop were too quick to be analyzed but the potential in the currency is exceptional. Apart from that, the other cryptocurrencies are also expected to see a gradual exponential rise as the altcoins, in addition to the bitcoin, are considered to be the future of money.
Reverting back to the statement made by Ben Miller, his perspective was mainly based on the stability of the digital currency.
Bitcoin is, I think, the most stable of the currencies. I think it has the greatest probability of being successful.
Continuing with the interview he also recognized the fact that there are other currencies that might interest different kind of people around the globe but Bitcoin is the only one that he primarily focuses on.
Clearly showing his inclination towards the most prevalent of the currencies in terms of the market cap, the billionaire stated that:
Every day that it doesn’t blow up and go to 0 or get regulated out of existence, what’s going to happen is more money flows into the ecosystem. More people are looking at it […] If every millionaire decided they want one bitcoin, the price would go non-linearly higher.
He also added that, “Anyone can lose 1% of their money, but it is very rare that you can buy something with 1% of your assets so it could become 10 or 20 or 50% in a few years.”
Bill envisions that Bitcoin can soon take over the market of gold. It can be taken as a direct alternate of gold with traditional institutions and “various central banks” acquiring Bitcoin as just another asset to keep under lock and key. If this forecast comes true, values for this asset will likely skyrocket, with Miller noting that Bitcoin could reach a valuation of one-third of the market capitalization of gold, which currently sits at $8 trillion.
Upon being asked if he thinks that the currency can be termed as a lottery ticket, Ben said,
Positive expectation lottery ticket as opposed to a negative expectation lottery ticket.
Although Ben Miller’s statement might only be primarily focused around his own opinions and preferences, yet it also highlights the fact that the market cap is being dominated by Bitcoin, and as of today, the bitcoin’s overall market capitalization is approximately 47%.
6+ month trend since January: Liquidity and value being sucked out of altcoins and into BTC. Despite there being dozens more altcoins launched, the “bitcoin dominance” has increased from 32% to 45%. This shows significant strength of Bitcoin as THE store of value in ecosystem. pic.twitter.com/CQGVTOfSyv
— P.Miller (@patmillertime) July 23, 2018
According to bitcoinist, “Bitcoin dominance has surged over the past two weeks, in particular. With the current bullish uptick in BTC price $8201.87 +0.25%, most altcoins have been left in the dust.”
He ended the interview making an interesting yet important point that crypto investors shouldn’t put too many eggs in one basket, and should treat their investment into crypto assets as a “positive expectation lottery ticket” that could multiply to “10, 20 or even 50% of your assets in a couple of years.”
The market cap may be dominated by Bitcoin as of yet but soon in the near future, other cryptocurrencies are expected to catch up in terms of market volumes and prices. Although the prices of bitcoin may seem to be sky rocketed but due the volatile nature of the currency, the sentiment is mixed and it is predicted by experts that the BTC may see an avalanche event in case of which the currency is expected to see the lows of almost $3,000.
Vouching for the volatile nature of BTC, the ‘Wolf of Wallstreet’, Jordan Belfort, said that he wants to warn the world and the new investors of the fact that the currency is going to crash. Jordan added that he’s very certain that there is going to be an incident involving the worst ever decline of Bitcoin that the currency has faced till date, however, he didn’t deny that Bitcoin wasn’t rising. While talking to Express UK, he said;
What’s going to happen with Bitcoin is going to be a black swan event in the next six months, by the way just so you know, I’m not saying Bitcoin is going down, it might go to $50,000.