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.

Continue reading

Source Fool.com