The Ultimate Cryptocurrency to Buy With $1,000 Today

Early investors in Bitcoin (CRYPTO:BTC), especially those who managed to hold on despite the insane volatility, are likely rich beyond their wildest dreams. The monster gains have continued recently, with the top digital asset up 594% in the last five years alone, a much better gain than the Nasdaq Composite index.

Bitcoin is trading just 10% below its peak price, and I still believe it’s the best crypto to buy for $1,000. Here are three reasons why.

Fixed supply limit

Perhaps Bitcoin’s defining feature is its hard supply cap: There will always be only 21 million coins in circulation. This cap is hard-coded into the Bitcoin source code, and will remain so unless a majority of nodes approve a change. For what it’s worth, I don’t think the hard cap will ever be changed, because if it were to change, it would undermine the value of the entire network.

Bitcoin’s fixed supply is what makes it stand out compared to fiat (government-backed) currencies like the US dollar. Our central bank, the Federal Reserve, has enormous power to control the money supply. Historically, the number of dollars in circulation has increased astronomically.

This setup is what makes Bitcoin superior to the current money network. A currency that is constantly losing value is problematic enough, and it’s a situation where your dollars lose value over time. However, in the world’s most powerful economy, the US, the debt problem is becoming too much to ignore. As of this writing, the country has a debt of $35 trillion, and that number is set to rise even more due to ongoing fiscal deficits.

Whether Bitcoin will ever become the new global reserve currency is anyone’s guess, but you can see why a decentralized, digital currency network with absolute scarcity would have tremendous value. And it requires a small investment.

Powerful catalysts

What’s remarkable is Bitcoin’s transformation from an obscure internet currency for tech enthusiasts to a legitimate mainstream financial asset. This has never been more evident than when the U.S. Securities and Exchange Commission approved Bitcoin spot exchange-traded funds (ETFs) in January 2024.

The launch of these spot ETFs could also be seen as a stamp of approval that Bitcoin has arrived and should be taken seriously by Wall Street and leaders in Washington.

Bitcoin is also becoming a popular political campaign tool. For example, former President (and 2024 candidate) Donald Trump is the keynote speaker at the Bitcoin 2024 Conference currently taking place in Nashville. Given its ability to attract voters, it’s hard to imagine a winning president not embracing Bitcoin.

The story continues

Another recent catalyst was the April halving, which cut Bitcoin’s new supply in half. This event occurs approximately every four years and is what forced the cryptocurrency’s hard supply cap of 21 million coins. Historically, its price has skyrocketed in the year and a half following the halving.

Return potential

Businesses that sell products and services to customers generate revenue and profit. Bitcoin, of course, is not built the same way. This makes it difficult to understand what its value should be.

Bitcoin is often seen as a digital version of gold. However, I have previously argued how this cryptocurrency is superior to the precious metal. Gold has a market cap of $16 trillion, which is 12 times more than Bitcoin’s $1.3 trillion. Over time, I don’t think it’s impossible for a digital asset to catch up or even surpass gold.

Therefore, even though Bitcoin has skyrocketed since its launch, it can still produce great returns for investors who can buy and hold for the next 10 or 20 years, making it the best cryptocurrency to buy with $1,000.

Should you invest $1,000 in Bitcoin right now?

Before buying Bitcoin stocks, consider the following:

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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has a position in Bitcoin and recommends Bitcoin. The Motley Fool has a disclosure policy.

The Best Cryptocurrency to Buy with $1,000 Today was originally published by The Motley Fool