Hedge funds are now buying Bitcoin, including former Legg Mason fund manager Bill Miller. Miller managed a fund at Legg Mason that beat the S&P 500 for 15 straight years through 2005.

His MVP1 fund is up 72.5 percent this year as of October 30th. MVP1 bought bitcoin at an average price of $350 each. Bitcoin traded around $6,100 in recent days, meaning the fund's digital currency investments have soared more than 1,600 percent in a year. How high can Bitcoin fly?