In a recent episode of the “Richer, Wiser, Happier” podcast, investment mogul Bill Miller shared some thought-provoking insights on Bitcoin (BTC), labeling it an “insurance policy against financial catastrophe.” He drew parallels between crypto and traditional financial systems using the chaotic backdrop of Afghanistan post-U.S. withdrawal.

Bitcoin: A Lifeline Amidst Chaos

Miller illustrated his point with the example of Afghanistan, where the financial landscape crumbled following the U.S. exit in August 2021. He stated,

“When the U.S. pulled out of Afghanistan, Western Union stopped sending remittances there… but if you had Bitcoin, you were fine.”

In other words, while traditional banking infrastructure might leave you high and dry, Bitcoin allows for accessibility and liquidity in challenging times.

The Pandemic and Bitcoin: A Resilient Performer

He seamlessly transitioned into discussing Bitcoin’s performance during the early pandemic phases. As the Federal Reserve unleashed a torrent of cash, Miller remarked,

“There was no run on Bitcoin… The system functioned without the Fed and without any interference.”

When the inflation bell began ringing, Bitcoin didn’t just survive; it thrived. Like that one friend at a party who brings the best snacks—they may not be the life of the party, but you’re glad they’re around when times are tough.

Rebutting the Critics: A Little Back-and-Forth with Buffett

Then came the grand showdown: Miller vs. Buffett. The Oracle of Omaha had snubbed Bitcoin, stating it

“doesn’t produce anything.”

Miller pointedly countered, “If the only thing that you think you can value are productive assets… then no one’s making you buy it, right? So ignore it.” This was a classic case of ‘you do you, Warren!’ Miller cleverly underscored that the ultimate goal of investing is to make money, not necessarily to collect productive assets like Pokémon cards (which, by the way, also don’t produce anything).

Miller’s Portfolio: Balancing Bitcoin with Amazon

With impressive financial acumen, Miller previously outperformed the S&P 500 for an astounding 15 years. Today, he remains bullish on Bitcoin, investing half of his net worth back in January. Spoiler alert: he’s still riding the crypto wave, holding around 40% to 50% of his assets in both Bitcoin and Amazon stock.

“80% of my net worth is split between the two assets,”

he confirmed, presenting a case for diversifying even within the crypto space.

Lessons from Tattoos: Novogratz and the LUNA Debacle

In a lighter vein, Miller commented on Mike Novogratz’s unfortunate tattoo of the now-tankered LUNA. Miller lamented,

“…maybe you should have got a Bitcoin on your arm, it’d be a little more enduring than that one.”

Perhaps not the best marketing strategy for Bitcoin, but certainly a solid lesson in humility! Novogratz himself reflected on the massive financial plunge, from a $10 billion empire to just $2 billion, proving that investing without caution can leave a lasting mark—literally!