Noted value investor Bill Miller owns bitcoin

Bitcoin an intellectual experiment: Bill Miller

Prominent value investor Bill Miller on Thursday said he is investing in bitcoin.

"The thing about bitcoin that is so interesting is the addressable market here," said Miller, former chairman of Legg Mason Capital, on CNBC's Closing Bell. "Gold alone has an $8 trillion market value, bitcoin has about a $7 billion market value, so if it's only 10 percent as successful as gold you get 100 times your money."

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The noted stock picker said he started buying bitcoin personally after the Mt.Gox exchange collapsed earlier this year.

"When that didn't destroy, in essence, the underlying psychology of it, it looked to me like it probably had a decent base of around $500 per coin," he said.