Bitcoin price predicted to hit $100k this year! I'm buying ASX 200 shares instead

I love ASX shares, here's why.

| More on:
A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cryptocurrency Bitcoin (CRYPTO: BTC) has done incredibly well over the last year, rising by around 100% to more than US$42,000. But, some cryptocurrency investors think the Bitcoin price is going to more than double again in 2024 to US$100,000 following the approval of Bitcoin exchange-traded funds (ETFs). Despite that, I'd prefer to invest in S&P/ASX 200 Index (ASX: XJO) shares.

What could send the Bitcoin price to US$100,000

Reporting by CNBC suggested that growing acceptance of Bitcoin could mean the cryptocurrency becomes more 'mainstream' and may lead to stronger demand.

Anthony Scaramucci, founder of SkyBridge Capital, said to the CNBC:

I think this is a really big breakthrough for bitcoin as a digital asset, it's a much broader story for digital property in general.

Could bitcoin be $100,000, which is more or a little bit more than a double over the next year? I do believe that.

I have been wrong so many times before.

Of course, a prediction doesn't make something true, it's just a guess from someone who wants to see the value rise.

Why I'd prefer to buy ASX 200 shares

Everyone is entitled is invest in whichever asset class they want to – bonds, property, shares, cryptocurrency, commodities and so on.

My preferred choice is individual (ASX 200) shares for a few different reasons.

I like that many of them are making a profit and can reinvest that profit into making more profit – that's the power of compounding.

With some of that profit, ASX 200 shares can decide to pay dividends. This creates passive income without having to sell any of the shares.

At some point over the next year or two, I think it's quite likely that interest rates are going to be cut, which could be good news for the valuation of ASX 200 shares.

There are a number of businesses on the ASX that have strong economic moats, or competitive advantages, which could allow them to continue to deliver good returns for many years into the future and protect the business against competition.

ASX 200 shares also have the option of diversifying its operations by launching a new service or product related to its core offering or starting/acquiring a whole new division. For example, Wesfarmers Ltd (ASX: WES) recently moved into healthcare, yet its main focus is retailing.

Some of the ASX 200 shares I've bought in the last few months and can see myself buying more of include Lovisa Holding Ltd (ASX: LOV), Pinnacle Investment Management Group Ltd (ASX: PNI) and Johns Lyng Group Ltd (ASX: JLG).

Motley Fool contributor Tristan Harrison has positions in Johns Lyng Group, Lovisa, and Pinnacle Investment Management Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group, Lovisa, Pinnacle Investment Management Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group and Wesfarmers. The Motley Fool Australia has recommended Johns Lyng Group and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

An ASX 200 market analyst holds his hand to his chin and looks closely at his computer screens watching share price movements
Opinions

Forget term deposits! I'd buy these two ASX 200 stocks instead

I think ASX stocks could make a much better investment than term deposits.

Read more »

share buyers, investors, happy investors
ETFs

How I would build a $100,000 portfolio with ASX ETFs today

You don't need more than three ETFs to build a diversified portfolio...

Read more »

iPhone with the logo and the word Google spelt multiple times in the background.
Opinions

I've been buying these 2 US stocks in 2025. Here's why

Sometimes the US markets are a better place to go shopping for stocks.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Opinions

Where I'd invest in ASX shares after the RBA interest rate cut

These stocks look really attractive to me. Here’s why…

Read more »

Miner looking at a tablet.
Opinions

3 reasons why the Fortescue share price could still be a buy

Let’s dig into why this mining giant could be a solid buy.

Read more »

A young woman wearing a red and white striped t-shirt puts her hand to her chin and looks sideways as she wonders whether to buy NAB shares
Opinions

The pros and cons of buying Wesfarmers shares in May

Is this retail giant an appealing opportunity?

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Opinions

2 ASX 200 shares that I think are still bargains after the market rally

These businesses look like attractive opportunities. Here’s why…

Read more »

A young woman looks at something on her laptop, wondering what will come next.
Opinions

Worried about another stock market sell-off?

Market declines don’t need to be too scary.

Read more »