After Bitcoin price arrived to new records, big investors start to care about the cryptocurrency world. Bill Miller, chairman of Miller Value Partners LLC, has revealed that Miller Value Partner’s MVP 1 hedge fund holds 30% of investments in Bitcoin.
Big Investors are Paying Attention in Cryptocurrencies
Since mid September, after China announced that was going to ban ICOs and close exchanges, Bitcoin does not stop growing. Its price evolved from $3000 dollars to $6600 just some hours ago. Accompanying this Bitcoin price growth in the last times, big investors are starting to diversify their portfolios adding cryptocurrencies.
This is the case of Bill Miller. His Hedge Fund has grown from 5% to 30% in the last 12 months. Just one year ago, Bitcoin price was $600 dollars, now it is ten times higher. In an interview with the Wall Street Journal, he said that MVP1 hedge fund has gained 72,5% value during 2017. Mr Miller has said that the fund bought Bitcoin at an average price of $350 dollars. Besides this point, he commented that he would invest 2% of his net worth into Bitcoin.
Why Do We Have an Increase in the Bitcoin Price?
On Ocotber the 25th, Bitcoin blockchain experienced the second hard fork of its history. Bitcoin Gold split and gave birth to a new blockchain. Bitcoin holders were awarded with the same amount of Bitcoin but in the Bitcoin Gold network. This produced a situation where investors sold part of their alt-coins in order to invest in Bitcoin.
In November, the Bitcoin community will also experience the SegWit2x hard fork. The same will occur with Bitcoin holders. They will be able to have tokens in the new separated blockchain. In basic words, this is free money. Once the investors get the virtual currency, they can sell them in them and earn some dollars.
But, there is not only one Mr. Miller in the industry. Mike Novogratz has also invested in Bitcoin since really long time. At the moment there are more than 120 crypto-funds focused in digital assets, according to financial research firm Autonomous Next. Only this year, 90 more funds were created in order to invest in cryptocurrencies.
The cryptocurrency market capitalization has grown ten times since the beginning of the year until now. It is interesting that the cryptocurrency market capitalization at the beginning of the year was the same as in 2014. Big investors are starting to move into Bitcoin supporting the upward trend that has taken this year.
Bitcoin Supporters vs Bitcoin Attackers
Mr. Miller has also described Bitcoin as a “true disruptor and true innovation in money”. Mike Novogratz has also commented about Bitcoin in a positive way. Novogratz said that Bitcoin is the biggest bubble in our lifetimes and that people should invest on it.
On the opposite side, Jamie Dimon, as well as Prince Alwaleed from Saudi Arabia commented in a negative way about Bitcoin. The first said that Bitcoin will “blow up” and that investors are “stupid”. The second one said that Bitcoin will “implode” and that he does not believe in it.
Picture courtesy of CNBC
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