There's more to Bitcoin than just its incredible upside potential. Just ask Mark Cuban.
58% increase over the year; Bitcoin (BTC -0.44%) Bitcoin remains one of the best-performing cryptocurrencies in 2024. Bitcoin's current price of $67,000 is well within reach of its all-time high of $73,750 and appears poised for a strong year-end rally.
So it's perhaps no surprise that billionaire investors are starting to take a harder look at Bitcoin as we head into 2025. One of them is billionaire tech entrepreneur Mark Cuban, who has become increasingly bullish on why investors should consider adding to the world's most popular cryptocurrency. to their portfolio. Should we also be bullish on Bitcoin?
Cases for purchasing Bitcoin
Clearly, Cubans are hooked on Bitcoin's huge upside potential. In July, when asked how much Bitcoin could go up, his answer was simple: “A lot more than you think.” Remember — just 11 years ago, Bitcoin was trading for less than $100. Who could have imagined back then that today's investors would seriously put a $1 million price tag on Bitcoin?
But as Cuban sees it, Bitcoin has more than incredible upside potential. As an example, Cuban suggests that Bitcoin can serve as a safe-haven asset during times of political uncertainty. And he believes Bitcoin can be a store of value similar to gold, especially in a hyperinflationary economic environment. As a result, Bitcoin offers investors incredible downside risk protection.
There is another attractive aspect of Bitcoin for Cuba. It is the ability to function as a global digital currency. In fact, Cuba has suggested that Bitcoin could eventually serve as a global reserve currency, similar to the US dollar today. If this were to happen, global demand for Bitcoin would increase dramatically, creating new upward pressure on prices for decades, if not decades to come.
Image source: Getty Images.
In fact, Cuban is so bullish on Bitcoin that he is currently the leader of Crypto4Harris, a loose coalition of tech investors and Silicon Valley entrepreneurs supporting Vice President Kamala Harris' cryptocurrency promotion strategy. I'm alone. Mr. Cuban even hinted that he would become the new SEC chief in the Harris administration.
Lawsuit against Bitcoin purchases
But remember, just a few years ago, Cuban was skeptical of Bitcoin. In 2019, he famously suggested he would rather buy bananas than Bitcoin. That's because he didn't see any obvious utility in Bitcoin. At least bananas have obvious nutritional value. “I can eat a banana, but I can't eat a bitcoin,” he said at the time.
Cuban confessed that he had no idea what it meant to buy cryptocurrencies. For him, buying Bitcoin was a lot like investing in baseball cards or comic books. Sure, this digital asset may have value for enthusiasts, but what about for everyone else? He said he was making it difficult. If you've ever wondered why someone would pay $1 million for a rare baseball card, you've probably wondered why someone would pay $1 million for a single Bitcoin.
All of this means that many investors are still questioning whether Bitcoin is a “home run” investment. In 2019, just two years before Bitcoin reached its then-high $69,000, things were far from clear. Even now, it is still unclear whether Bitcoin will break through the $100,000 price range.
Therefore, before you decide to follow Cuba and buy Bitcoin, you should familiarize yourself with its value as a digital asset. If you don't “get” how Bitcoin can reshape the modern global financial system, it may not be for you.
Do you want to buy Bitcoin for the long term?
After all, I follow Cuba. He looks at Bitcoin from the perspective of a venture capitalist and technology entrepreneur. If he likes what he sees now after being a crypto skeptic, I'd feel more comfortable investing in Bitcoin too.
Now that Bitcoin has officially entered the cultural zeitgeist and become an issue in the presidential election, it's easy to imagine it becoming even more mainstream over the next four years. who knows? If Mr. Cuban ends up taking the top job at the SEC, we may be just at the beginning of a long and exciting journey for Bitcoin.
