Cash News
Cryptocurrencies are having a bullish week. The price of many crypto assets recently set all time highs, and experts believe even more upside could be on the way.
Whether you’re an experienced crypto investor or just starting out, here are two billionaire-backed cryptocurrencies worth digging into this week.
When it comes to cryptocurrencies, nothing has ever been able to topple Bitcoin (CRYPTO: BTC). More than 15 years after its creation, Bitcoin remains the undisputed leader, with a market cap of $1.4 trillion — bigger than any other cryptocurrency and making up 58% of the crypto market’s total value. Investing $100 in Bitcoin the year it launched would have transformed you into a multimillionaire today. But one investor (perhaps not quite a billionaire, but still pretty wealthy) believes there could be another 5,300% in potential upside to go.
Earlier this year, iconic growth investor Cathie Wood unveiled her long-term price prediction for Bitcoin: $1.5 million. That price target implies enormous upside potential for Bitcoin, which currently trades at about $68,000. But Wood believes that the future could actually exceed her wildly optimistic predictions. “If institutional investors were to allocate a little more than 5% of their portfolios to Bitcoin,” she explained in March, “that alone would add $2.3 million to the projection I just gave you.” That means that, in total, Wood believes Bitcoin’s long term price could exceed $3.5 million. Just for perspective, she’s more conservative than billionaire MicroStrategy Executive Chairman Michael Saylor, who not long ago said he thinks Bitcoin will rise to $13 million by 2024.
It’s important to note that Wood didn’t give a specific date for her long-term price prediction. She’s merely pointing out that, should adoption trend in a certain direction, Bitcoin’s value will almost certainly continue to rise. Even a simple comparison to gold — another popular store-of-value asset — provides a compelling investment case. Right now, gold has a market cap of roughly $18 trillion — 13 times higher than Bitcoin’s. Of course, Bitcoin also has upside value related to its application as a currency and development platform. But no matter how you slice it, it’s easy to understand why Cathie Wood remains invested for the long term — whether Bitcoin has a good week of performance or not.
If you’re looking to invest in the next Bitcoin, Ethereum (CRYPTO: ETH) is a great place to start. Due to its structure, Ethereum could conceivably be much bigger than Bitcoin over the long term. It shouldn’t be surprising, then, that several billionaires — including Tim Draper, Vitalik Buterin, and the Winklevoss twins — are betting big on this next-gen cryptocurrency.