There’s extra to love about Bitcoin past its phenomenal upside potential. Simply ask Mark Cuban.
Up 58% for the yr, Bitcoin (BTC 0.89%) stays one of many best-performing cryptocurrencies of 2024. At its present worth of $67,000, Bitcoin is inside placing distance of its all-time excessive of $73,750 and seems poised for a powerful year-end rally.
So it is maybe no shock that billionaire traders are beginning to take a more durable take a look at Bitcoin as we head into 2025. One among them is billionaire tech entrepreneur Mark Cuban, who has develop into more and more bullish in regards to the causes traders ought to think about including the world’s hottest cryptocurrency to their portfolios. Must you be bullish on Bitcoin, too?
The case for getting Bitcoin
Clearly, Cuban is enamored with Bitcoin’s large upside potential. In July, he was requested how a lot greater Bitcoin would possibly go, and his reply was easy: “Means greater than you assume.” Do not forget — simply 11 years in the past, Bitcoin was buying and selling for lower than $100. Who may have imagined on the time that traders at this time could be significantly speaking up a $1 million price ticket for Bitcoin?
As Cuban sees it, although, there’s extra to Bitcoin than simply its phenomenal upside potential. For one, Cuban means that Bitcoin can operate as a protected haven asset throughout instances of political uncertainty. And he is satisfied that Bitcoin — similar to gold — generally is a retailer of worth, particularly in hyperinflationary financial environments. In consequence, Bitcoin provides some shocking draw back threat safety for traders.
There’s yet another facet of Bitcoin that appeals to Cuban, its capability to operate as a worldwide digital foreign money. The truth is, Cuban has steered that Bitcoin may ultimately operate as a world reserve foreign money, a lot because the U.S. greenback does at this time. If that is the case, then it could dramatically increase worldwide demand for Bitcoin, creating new upward worth stress for years, if not many years, to return.
Picture supply: Getty Photos.
Cuban is so bullish on Bitcoin, in actual fact, that he is now one of many leaders of Crypto4Harris, a unfastened coalition of tech traders and Silicon Valley entrepreneurs who’re backing a pro-crypto technique for Vice President Kamala Harris. Cuban has even steered that he’d be keen to function the brand new head of the SEC in a Harris administration.
The case towards shopping for Bitcoin
However do not forget that only a few years in the past, Cuban was a Bitcoin skeptic. In 2019, he famously steered that he’d quite purchase bananas than Bitcoin. That is as a result of he did not see any apparent utility for Bitcoin. Not less than with bananas, there’s the apparent dietary worth. “I may eat bananas — Bitcoin, not a lot,” he remarked on the time.
Cuban confessed that he did not see the purpose of shopping for crypto in any respect. For him, shopping for Bitcoin was very like investing in baseball playing cards or comedian books. Certain, the digital asset may need worth for die-hard fans, however what about for everybody else? Bitcoin, he stated, merely did not have any intrinsic worth, and that made it exhausting to belief. Should you’ve ever questioned why somebody would pay $1 million for a uncommon baseball card, you have additionally most likely questioned why somebody would pay $1 million for a single Bitcoin.
All of which is to say that many traders nonetheless query whether or not Bitcoin is a “residence run” funding. In 2019 — simply two years earlier than Bitcoin went on to hit a then-all-time excessive of $69,000 — issues weren’t apparent in any respect. Even at this time, it is nonetheless not apparent whether or not Bitcoin will ever break by way of the $100,000 worth level.
So earlier than you resolve to comply with Cuban and purchase Bitcoin, you want to be comfy with its worth as a digital asset. Should you do not “get” how Bitcoin may reshape the trendy world monetary system, then it won’t be for you.
Purchase Bitcoin for the long run?
On the finish of the day, I am following Cuban. He is Bitcoin from the attitude of a enterprise capitalist and a tech entrepreneur. If he likes what he sees now after having been a crypto skeptic, then that makes me rather more comfy investing in Bitcoin as properly.
Now that Bitcoin has formally tipped into the cultural zeitgeist and develop into a presidential marketing campaign challenge, it is easy to see Bitcoin going much more mainstream over the following 4 years. Who is aware of? If Cuban ultimately finally ends up heading the SEC, then we would simply be initially of an extended, thrilling run for Bitcoin.
