Should you follow billionaire Mark Cuban and buy Bitcoin?

Increase of 58% in the year, Bitcoin (CRYPTO: BTC) remains one of the best performing cryptocurrencies in 2024. At its current price of $67,000, Bitcoin is very close to its all-time high of $73,750 and appears poised for a strong recovery later in the year.

So perhaps it’s no surprise that billionaire investors are starting to look more closely at Bitcoin as we move towards 2025. One of them is billionaire tech entrepreneur Mark Cuban, who is increasingly optimistic about the reasons why Investors should consider adding the world’s most popular cryptocurrency. to their portfolios. Should you also be bullish on Bitcoin?

The Case for Buying Bitcoin

Obviously, Cuban is enamored with Bitcoin’s enormous upside potential. In July, he was asked how high Bitcoin could go, and his answer was simple: “Much higher than you think.” Don’t forget: just 11 years ago, Bitcoin traded for less than $100. Who could have imagined at the time that investors today would be talking seriously about a $1 million price tag for Bitcoin?

In Cuban’s opinion, however, Bitcoin is more than just its phenomenal appreciation potential. On the one hand, Cuban suggests that Bitcoin can function as a safe haven asset in times of political uncertainty. And he is convinced that Bitcoin – like gold – can be a store of value, especially in hyperinflationary economic environments. As a result, Bitcoin offers surprising downside risk protection for investors.

There is one more aspect of Bitcoin that attracts Cuba: its ability to function as a global digital currency. In fact, Cuban suggested that Bitcoin could eventually function as a global reserve currency, much like the US dollar does today. If that is the case, then it would dramatically increase global demand for Bitcoin, creating new upward pressure on prices for years, if not decades, to come.

Image source: Getty Images.

In fact, Cuban is so bullish on Bitcoin that he is now one of the leaders of Crypto4Harris, a coalition of technology investors and Silicon Valley entrepreneurs supporting a pro-crypto strategy for Vice President Kamala Harris. Cuban even suggested that he would be willing to serve as the new head of the SEC in the Harris administration.

The Case Against Buying Bitcoin

But don’t forget that just a few years ago, Cuban was a Bitcoin skeptic. In 2019, he suggested he would rather buy bananas than Bitcoin. This is because he saw no obvious use for Bitcoin. At least with bananas, there is the obvious nutritional value. “I could eat bananas – Bitcoin, not so much,” he commented at the time.

Cuban confessed that he saw no point in buying crypto. For him, buying Bitcoin was like investing in baseball cards or comic books. Sure, the digital asset may have value for die-hard enthusiasts, but what about everyone else? Bitcoin, he said, simply had no intrinsic value, and that made it difficult to trust. If you’ve ever wondered why someone would pay $1 million for a rare baseball card, you’ve probably also wondered why someone would pay $1 million for a single Bitcoin.

All of this means that many investors still question whether Bitcoin is a “home run” investment. In 2019 – just two years before Bitcoin reached an all-time high of $69,000 – things were less than obvious. Even today, it is still not obvious whether Bitcoin will ever surpass the $100,000 price range.

Therefore, before you decide to follow Cuban and buy Bitcoin, you need to be comfortable with its value as a digital asset. If you don’t “get” how Bitcoin could reshape the modern global financial system, then it might not be for you.

Buy Bitcoin for the long term?

Ultimately, I’m following Cuban. He is looking at Bitcoin from the perspective of a venture capitalist and a technology entrepreneur. If he likes what he sees now, after having been a crypto skeptic, it also makes me much more comfortable investing in Bitcoin.

Now that Bitcoin has officially entered the cultural zeitgeist and become a presidential campaign issue, it’s easy to see Bitcoin becoming even more popular over the next four years. Who knows? If Cuban eventually ends up leading the SEC, then we could just be at the beginning of a long and exciting run for Bitcoin.

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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has a disclosure policy.