The Smartest Cryptocurrency to Buy With $1,000 Right Now
This top cryptocurrency commands 60% of the entire industry's market cap, and it's the largest and most valuable digital asset by far.
There is a vast financial ecosystem that supports greater adoption of this crypto.
Investors can have confidence in this network's staying power for the long term.
10 stocks we like better than Bitcoin ›
Recent developments have created a more favorable regulatory backdrop for the cryptocurrency industry. That should gives investors confidence when assessing whether they will put money to work. But among the sea of choices out there, it can feel like an impossible task trying to pick one. I think it's best to keep things simple.
If you have $1,000 that you're ready to invest in this exciting asset class, look no further than this top cryptocurrency. I view it as the smartest investment to make in the sector.
Already a winner
The entire crypto market is valued at roughly $4 trillion, as of July 24. However, there's one digital asset that reigns supreme. Bitcoin (CRYPTO: BTC), which carries a market cap of $2.4 trillion, represents 60% of the whole industry. I believe it's the best crypto to buy right now with $1,000.
Introduced in early 2009, Bitcoin is the oldest cryptocurrency in the world. This gives it a valuable first-mover advantage. It has the brand recognition, as well as the mind share, that puts it ahead of all the other blockchains. Plus, Bitcoin is likely the first place investors look when thinking about allocating capital to cryptocurrency.
Bitcoin is also the most liquid. Its market cap is more than five times more valuable than Ethereum's. Just in the past 24 hours, about $30 billion worth of Bitcoin was sent between addresses.
Bitcoin's network effect can't be overstated. There is a large group of developers working on maintaining it, and there are miners and nodes scattered around the globe supporting Bitcoin's functioning. This doesn't mention all the market participants that use Bitcoin.
Looking more broadly, Bitcoin has a deep (and growing) financial ecosystem that supports its adoption. Financial services, including exchanges, wallets, payment systems, exchange-traded funds, and custody services, is one robust area that highlights how much development is taking place with Bitcoin.
One of the biggest risks was that the U.S. government would ban Bitcoin. This is no longer something to worry about, as Bitcoin has been fully embraced. For example, the White House announced a planned Strategic Bitcoin Reserve, showcasing the importance of owning the digital asset at the federal level.
Thinking about the next decade and beyond
Warren Buffett is a legendary investor who has found tremendous success because his philosophy centers on owning durable businesses that have stood and will continue to stand the test of time. Investors should adopt the same approach when looking at the cryptocurrency industry. Yes, there will be smaller, more volatile, and more exciting tokens whose prices can skyrocket in a short period of time based on changing investor sentiment. But no one can confidently say that they will even be around a decade from now.
Bitcoin stands above the rest. I believe it's the crypto that has the most staying power. It has survived up until now, successfully making it through changing economic conditions and multiple crypto winters, only to bounce back stronger than ever. This gives me confidence that it will not only be relevant, but will be thriving, far into the future.
Gold currently has a market cap of $23.1 trillion. For thousands of years, the precious metal has been viewed as the scarcest asset in the world. Bitcoin is even scarcer, with an absolutely finite supply cap of 21 million units. This makes it extremely attractive to own, especially when compared to the excessive spending and rising debt of the U.S. government and other countries around the globe.
A $1,000 investment in Bitcoin today could be worth significantly more years and decades down the road.
Should you buy stock in Bitcoin right now?
Before you buy stock in Bitcoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!*
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
The Smartest Cryptocurrency to Buy With $1,000 Right Now was originally published by The Motley Fool
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