Since the beginning of 2023, Bitcoin (CRYPTO: BTC) has been one of the best assets to own. Its price soared about 300% during this period (as of June 14), a better gain than the 69% increase in Nasdaq Composite Index.

But it’s been a rollercoaster since Bitcoin hit its all-time high in March. At the time of this writing, the main cryptocurrency it is 11% below that peak.

Should investors consider buying Bitcoin while it is trading for less than $70,000?

bear case

Perhaps the most obvious argument against Bitcoin is that it could be banned in the US, just as it was in China. Others speculate that computational advances, whether in artificial intelligence or quantum computing, could break Bitcoin’s cryptographic structure.

These are all valid points. And the longer the network exists and gains popularity, the greater these risks will be.

Bull case

Understanding the bearish scenario is critical to gaining a complete perspective on an asset. But I believe Bitcoin’s bullish arguments carry more weight.

Spot exchange-traded funds have introduced more capital into the mix, making it easier to buy Bitcoin. But these funds, approved by the Securities and Exchange Commission in January, also put a stamp of legitimacy on crypto. When we look back on this event years later, we will likely see it as a seminal moment when Bitcoin officially arrived.

In April, Bitcoin went through another reduce by half, an event that happens approximately every four years and which reduces the supply of new coins entering the market by half. This has always been a catalyst for Bitcoin. Optimistic investors hope that in the next 12 to 18 months, Bitcoin could reach a new all-time high.

And investors should first think about what makes Bitcoin unique. It is often compared to gold. The precious metal has been seen as an important store of value for thousands of years. However, the eventual total supply of Bitcoin is mathematically limited and there will never be more than 21 million coins. And Bitcoin is easier to store and transport than gold, while also having an easier transactional value.

However, Bitcoin’s current market cap of $1.3 trillion is just 8% of gold’s $15.7 trillion. In a world that is becoming increasingly digital, tech-enabled and connected, I think it is reasonable to expect that major cryptocurrencies could one day command the same valuation as gold. This would imply a 1,100% advantage.

Bitcoin is also special because it is an alternative to the debt-fueled and inflationary fiscal and monetary policies that have characterized the US, as well as other countries, in recent decades. Many economists have argued that this path is not sustainable.

The story continues

If more people start to believe these arguments, they may very well want to own an asset like Bitcoin that is not controlled by a central bank. As fiat currencies continue to lose value over time, Bitcoin, which has a fixed supply limit, could continue to increase in value as it has in the past.

Buying some of this cryptocurrency for less than $70,000 seems like a smart decision.

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Neil Patel and its clients do not have a position in any of the stocks mentioned. The Motley Fool has positions and recommends Bitcoin. The motley fool has a disclosure policy.

Should you buy Bitcoin while it costs less than $70,000? was originally published by The Motley Fool

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