Legendary investor Bill Miller compared Bitcoin to an insurance policy, noting that it may have no intrinsic value but is duly useful in the event of a disaster.
Miller said that he still holds the majority of Bitcoin in his portfolio.
BTC price rose above $45,000 on Thursday, jumping above resistance levels amid high volatility in the market.
Bitcoin is what investors need as a hedge against financial disaster, legendary investor Bill Miller said in an interview with CNBC.
According to the fund's manager, who revealed in January that he keeps most of his personal wealth in Bitcoin, the cryptocurrency acts "like an insurance policy."
Explaining the analogy, the famous investor told CNBC that people choose insurance even when they know the policy has no intrinsic value.
The former chief investment officer at Legg Mason Capital Management Value Trust said it was precisely this factor (lack of intrinsic value) that made people want to get insurance. Not because they want to see their property destroyed or expect to have an accident, but because insurance is always useful if disaster strikes.
“Bitcoin is insurance against financial disaster,” he explained in comments referenced by Insider.
Miller also commented on his crypto portfolio, noting that previous allocations in BTC grew exponentially during a bull market until Bitcoin peaked in November. Although the holdings have taken a hit during the recent market slump, the investor said he still holds "big positions."
On overall cryptocurrency adoption, the investor said the trend would be to see big banks, endowments, and pension funds adding Bitcoin to their balance sheets. According to him, KPMG Canada's move is the beginning of a big change.
Bitcoin is trading at around $45,350 at the time of writing, up about 3% in the last 24 hours and more than 22% up last week. Today's market movements show the cryptocurrency fluctuates sharply as the market reacts to new inflation data from the US.
The move to intraday highs above $45,600 includes a sharp drop below $44,000, but analysts are optimistic the crypto bull market is not over yet.