When mainstream investors and analysts discuss bitcoin investing, their answers are often so divergent that one could question whether they are even talking about the same asset.
This contentious debate has heightened in recent months, as the bitcoin price has repeatedly shattered records and carried the markets to fresh all-time highs. That trend continued on Saturday, as the bitcoin price rode a post-Thanksgiving wave of euphoria to a new high-water mark of $8,754 on bitcoin exchange Bitfinex.
The bears have been out in full force. JPMorgan CEO Jamie Dimon says bitcoin is a “fraud,” even though his firm might help clients trade bitcoin futures, and other entrenched financiers have issued similar condemnations.
That said, the list of bulls is steadily growing, with market observers such as billionaire hedge fund manager Mike Novogratz beginning to realize that it is a revolutionary technology.
Mark Cuban, a long-time cryptocurrency skeptic, has softened his stance in recent months, but he still believes cryptocurrency is “more religion than asset” and that bitcoin investing is a longshot — but one that aggressive investors should consider taking.
In a recent interview with Vanity Fair, the dotcom billionaire and Dallas Mavericks owner advised prospective investors to take a conservative approach, allocating the majority of their assets to a simple S&P 500 index fund. However, he added that “true adventurers” should place as much as 10 percent of their savings into bitcoin and ethereum.
“If you’re a true adventurer, and you really want to throw the Hail Mary, you might take 10 percent [of your investment capital] and put it in bitcoin or ethereum,” he said.
Now, very few Hail Mary attempts succeed, and Cuban cautions those willing to take the chance that they should be prepared to lose all of their money.
Nevertheless, those true adventurers who did take the plunge into bitcoin investing on Cuban’s advice have already been richly rewarded. Since Cuban issued this suggestion on October 18, the bitcoin price has already risen by 60 percent, increasing the value of a hypothetical $10,000 investment to $16,000.
Counting the value of any coins derived from Bitcoin Gold, an altcoin that forked away from the main bitcoin blockchain in late October and airdropped coins to anyone holding bitcoin funds at the date of the fork, the present value of that initial investment rises to nearly $17,000.
if this trend continues, it won’t be long before Cuban’s bitcoin Hail Mary begins to look more like an extra point attempt.
Featured Image from ABC News