Why Buffett’s wrong on bitcoin: Legg Mason’s Miller

billmiller10 Apr 2014 / CNBC – Legg Mason’s Bill Miller may have lost 20 percent of his investment in bitcoin, but he’s still bullish on its potential. The money manager told CNBC on Thursday he bought into the cryptocurrency after its biggest exchange, Mt.Gox, collapsed earlier this year.

Miller, chairman and chief investment officer at Legg Mason Capital Management, said bitcoin makes sense when investors look at its risks versus rewards. The payoffs would be huge if the digital currency can obtain a small fraction of gold’s market share, he said.

Bitcoin prices exploded last year just past $1,100 only to hit several potholes in recent weeks. Bitcoins traded at $410 on Thursday morning, according to exchange bitstamp.net.

“You can’t go buy anything with gold today in the United States,” Miller said on “Squawk Box.” “If it becomes only 10 percent as popular as gold, then it’s an $800 billion market value. You can lose 100 percent of your money, or you can make 120 times your money. I think the risk reward is OK.”….. Read more


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