2024-06-15 05:30:00 ET
When it comes to investing in cryptocurrencies, the conventional wisdom is that they are highly risky, highly speculative investments. Popular cryptocurrencies such as Bitcoin (CRYPTO: BTC) achieve stratospheric valuations primarily due to investor perceptions of their enormous future growth potential. That means they can best be compared to growth stocks , not value stocks .
But what if you are willing to think outside the box? According to Bill Miller IV, chief investment officer of Miller Value Partners, Bitcoin can also be analyzed as a value stock. And based on the intrinsic value that Miller sees in Bitcoin , he thinks it could be worth many times more than its current market value, $1.3 trillion. Is he right?
There's obviously a lot to unpack here. First, there are no real fundamentals by which to value Bitcoin, and thus no real benchmarks or metrics, such as price-to-earnings (P/E) ratios , to use for comparison. And Bitcoin hardly seems like a cheap, undervalued investment. It has a lofty $65,000 price tag and is currently trading near an all-time high. In other words, Bitcoin looks a lot more like a growth stock than a value stock.
For further details see:
1 Top Cryptocurrency to Buy Before It Soars Another $1 Trillion in Market Cap, According to Value Investor Bill Miller IV