The only reserve asset, which Russia controls, is gold, meaning that the country might soon open its arms to bitcoin, Bill Miller opined.
Legacy investor, fund manager, and philanthropist Bill Miller believes that the financial sanctions imposed on Russia could cause bitcoin’s price to soar. He pointed out that gold is the only reserve asset the largest country by landmass controls on its own, meaning that BTC might gain traction in the days to come.
BTC’s Surge Following The Crash of The Ruble
The military conflict in Ukraine changed the tides in the financial world drastically. NATO and the EU declared economic war on Putin’s regime. The USA, the UK, Germany, and many others cut their monetary connection with Russia and excluded the many Russian banks from the major payment system SWIFT.
As a result of those sanctions, the ruble plummeted by over 25%, while Russian citizens started looking for alternative financial instruments to preserve their savings. Bitcoin trading volumes in the region spiked to record levels.
In a recent interview for CNBC, the former Chairman of Legg Mason Capital Management – Bill Miller – outlined that Russia keeps 16% of its reserves in dollars and 32% in euros. Those assets are managed by “people who want to do them harm.” He further stated that the only part of their reserves, which other nations can not control, is gold (22%). According to Miller, these metrics are a “very bullish” sign for bitcoin.
Miller’s Bitcoin Stance
Despite his skeptical BTC opinion in the past, the American has turned into a keen supporter of the primary cryptocurrency recently.
In May last year, he argued that investing in it is safe even during price drops. In fact, traders should find it more attractive when the value has decreased:
“If I liked something at higher prices, it is a safe bet I will like it even more at lower prices.”
Several months later, he made a somewhat interesting comparison between bitcoin and gold. In his view, the digital asset resembles the luxurious sports car Ferrari, while the precious metal is old-fashioned – like a “horse-and-buggy.”
Earlier this year, the legacy investor admitted he had allocated 50% of his portfolio to bitcoin.
Verdict
Indeed, I believe the Ukraine-Russia situation will likely expediate mass adoption of the likes of Bitcoin as it provides a real case for a viable decentralised, tamper-proof, unconfiscatable monetary system.
Not only does crypto allow financial institutions to work seamlessly together, it will also help individuals send and receive payments. This is becoming especially critical amid reports that banks in Ukraine have put a limit on withdrawals at a maximum 10,000 roubles or $129 per day from ATMs, and/or are completely shut.
In short, due to The Law of Unintended Consequences, the need for an alternative payment for most sovereign nations has been laid bare – and cryptocurrencies will be amongst the major beneficiaries.
