Well-known investor and Berkshire Hathaway CEO Warren Buffett called Bitcoin “likely rat poison” in 2018. In his market keynote in Q4 2020, financial analyst Bill Miller agreed with Buffett’s description of the asset, but not without a surcharge.

“Warren Buffett called Bitcoin ‘rat poison,’” Miller said in his Saturday post, adding:

“He’s probably right. Bitcoin can be rat poison, and rat can be cash, ”he said.
Miller began his letter by explaining how each new year lays the foundation for different financial expectations. However, according to Miller, economic forecasts and forecasts can be useless, as evidenced by the unforeseen COVID-19 pandemic and its cascading effects. However, the projections can be favorable if the rationale behind these expectations is taken into account.

Nevertheless, Miller continued to analyze the current situation in the United States in terms of markets, inflation, interest rates and other aspects, pointing out the value of understanding the current situation, not expectations.

He ended his post with a section on Bitcoin (BTC), describing the outstanding performance for the coin in the past year. “Its market value is higher than GB Morgan and more than Berkshire Hathaway, but it is still at a very early stage in its certification cycle,” Miller said.

“The Federal Reserve is pursuing a policy to ensure that cash investments lose money in real terms for the foreseeable future,” Miller added, later pointing to the trend towards asset purchases by large players. In 2020, MicroStrategy, MassMutual and several other companies bought large batches of bitcoins. Specifically, MicroStrategy bought part of Bitcoin to avoid the loss of monetary value caused by inflation.

“It is estimated that Paypal and Square alone buy all 900 new bitcoins on behalf of their customers every day,” Miller said, adding:

“If inflation rises, or even if it doesn’t, and more companies decide to diversify a small portion of bitcoin cash instead of cash, the current relative bitcoin flow will be one stream.”
Bitcoin has recently grown, breaking the $ 35,000 barrier as it continues to gain regular distribution.

Source: CoinTelegraph