Billionaire Bill Miller IV recently shared his skepticism about proof-of-stake blockchains, such as Ethereum and Solana, stating that they are unlikely to outperform Bitcoin in the long run. In an interview with CNBC’s “Closing Bell” on July 28, Miller expressed his belief that Bitcoin’s proof-of-work design provides a level of durability that other networks cannot match.
Miller raised concerns about how recent US policy moves may temporarily boost proof-of-stake assets but argued that they do not offer a sustainable edge over Bitcoin. He criticized the classification of Ethereum and Solana blockchains as decentralized under the CLARITY Act, stating that if these chains were launched today, they would face a different process.
The billionaire investor highlighted governance issues with proof of stake, noting that those with a large stake in the blockchain have a significant influence over decision-making. He contrasted this with Bitcoin’s proof-of-work consensus, which he described as a game-changing technology that ensures network integrity through the energy cost of creating new bitcoins.
Miller attributed the recent market gains in Ethereum to regulatory developments in Washington, specifically citing the signing of the GENIUS Act and the progress of the CLARITY Act. The GENIUS Act, signed into law by President Donald Trump on July 18, established a federal framework for dollar-backed stablecoins.
While acknowledging that policy momentum can drive up assets based on proof of stake, Miller remained unconvinced that they would surpass Bitcoin in the long term. He emphasized Bitcoin’s role in promoting monetary accountability through its transparent and immutable ledger, suggesting that other blockchains do not offer unique solutions that Bitcoin has not already addressed.
Looking ahead, Miller predicted a future where every company would hold Bitcoin in its treasury, and he anticipated that bond and equity managers investing in Bitcoin-related assets would outperform their peers. He concluded by stating that the potential advantages of proof-of-stake technology are yet to be fully realized.
In conclusion, Bill Miller IV’s insights shed light on the ongoing debate between proof-of-stake and proof-of-work blockchains, with Bitcoin’s resilience and transparency standing out as key strengths in the evolving landscape of digital assets.