Bitcoin Is the 'New Denominator for Capital' Globally and Will Replace Fiat Money, Miller Value Partners CEO Says

In Miller's view, bitcoin is on track to replace fiat capital and completely revolutionize monetary systems across the world.

According to Spencer Miller, managing partner at venture capital firm Fifth Wall Ventures, bitcoin is set to become the new standard denominator for global capital.

In an interview with Business Insider, Miller explained his bullish view on bitcoin, highlighting its finite supply and role as a counterpoint to the inflationary pressures inherent in fiat currencies.

At the heart of Miller's thesis is bitcoin's scarcity, which stands in stark contrast to fiat currencies.

"The bitcoin system is very, very clear in that there's only 21 million. There's a governed supply over time. And people that join the bitcoin system later have less bitcoin available to them. And so the price naturally has to go up for people to want to sell their bitcoin," Miller said.

Satoshi Nakamoto, the pseudonymous creator of bitcoin, designed the cryptocurrency with a supply cap to prevent inflation. No such protocol exists for the US dollar or other traditional currencies. Instead, regulators and politicians attempt to control the money supply.

"What happens with the current system is regulators and politicians jockey for control in an effort to shift the ledger through the printing of more dollars. And so, ultimately, what we get is a system where there is no accountability in the creation of new units of money," Miller said.

A prime example of this is the US Treasury Department's pandemic-era printing spree, which injected trillions of dollars of stimulus into the economy.

"We've never had a technology before that enabled us to account for value in an automated way or in automated units until now. And so it's really the first time that we can have an automated system of money creation," Miller added.

In contrast to fiat currencies, bitcoin's energy-intensive mining process creates a strong value proposition for the cryptocurrency.

"If money is an accountability system, why do we create more units of money every year?" Miller said.

Moreover, bitcoin has a massive total addressable market, which makes it a compelling value play in Miller's eyes.

"With the world's fiat systems approaching a quadrillion dollars in capital and bitcoin's market capitalization sitting at a modest $1.5 trillion, Miller sees this as an opportunity for the cryptocurrency to skyrocket in coming years," the article reads.

Bitcoin is also massively under-owned in general among investors, in Miller's opinion. He points out that there are only 10.5 million wallets with over $1,000 in bitcoin holdings globally.

"It's still early days for bitcoin, but Miller sees the cryptocurrency on track to revolutionize the global monetary system," the article concludes.

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