How do governments store bitcoins? The famous billionaire answers

The widespread acceptance of bitcoin among governments is one of the events that has led to a significant increase in the price of this digital currency, and now it seems that the opportunity has arisen. According to experts, Russian financial sanctions could soon encourage other countries to change their foreign exchange reserves and use digital currencies.

To Report CryptoGlob Bill Miller, billionaire investor, founder and CEO of Miller Value Partners, has said that the current fall of the Russian ruble “will be followed by an upward trend for bitcoin” because the value of this Digital currency is determined by global supply and demand. It may also lead to the use of bitcoin as a reserve asset in other countries.

Miller serves as the portfolio manager of Opportunity Equity and Income Strategy. In an interview with CNBC, he said that currently 16% of Russia’s total $ 640 billion in foreign exchange reserves are in US dollars and 32% in euros. This means that almost half of the country’s reserves are controlled by those who intend to hit the Russian economy.

Last week, Russian President Vladimir Putin announced the launch of a “special military operation” on Ukrainian soil, which later turned out to be a full-scale offensive against the country. The move provoked a backlash from Western leaders, including economic sanctions.

The sanctions pushed the Russian ruble to a record low of more than 30 percent against the US dollar, while the Moscow Stock Exchange (MOEX) index fell as much as 40 percent before the end of the week. Was. Shares of Sberbank, Russia’s banking and lending giant, also fell 95 percent on the London Stock Exchange amid an unusual outflow of liquidity in its market.

Miller said Russia is clearly not in a good position, as only 22 percent of its gold reserves, which are in the form of gold, are not controlled by the latter. The experienced investor explained that about 100 countries do not use common reserve currencies (such as the dollar, euro and Japanese yen) as their official currency. Now, these countries may seek to store assets that other countries can not use against them and, of course, not be affected by inflation.

He said:

So I think these streams are going to be a very uptrend for bitcoin.

Miller added that bitcoin is different from other digital currencies; Because those currencies are designed to solve other problems. As a result, opening an account on them is an adventurous and risky investment.

Miller has long thought that the bitcoin trend will be bullish. He backed Bitcoin in October 2021; But he was not very optimistic about the survival of the Altcoins. He believes that people can use bitcoin to insure their capital against financial disasters.