Being a crypto bull has its challenges. Even though bitcoin surged in 2023, it is still down more than 60% from its peak of $68,789 reached in November 2021.
But one billionaire investor still loves the world’s biggest cryptocurrency: Mark Cuban.
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“I want Bitcoin to go much lower so I can buy more of it,” Cuban said on a recent episode of Bill Maher’s Club Random podcast.
Maher, who claims to be “very anti-bitcoin”, owns gold instead. Cuban, conversely, has no time for yellow metal.
“If you have gold, you’re stupid as f—” says the Shark Tank star and Dallas Mavericks owner.
Maher argues that gold “is like a hedge against everything else”, but Cuba disagrees.
“Gold is no protection against anything, is it? What it is is a store of value and you don’t own the physical gold, do you… Gold is a store of value, just like Bitcoin,” says Cuban.
He then highlights why gold can’t really protect your wealth in times of crisis.
“You don’t own the gold bar, and if everything went wrong in a hand basket and you had a gold bar, you know what would happen? Someone would beat you to death or kill you and take your gold bar.
If you share Cuba’s view, here are some ways to get exposure to bitcoin.
Buy bitcoins directly
The first option is the simplest: if you want to buy Bitcoin, just buy Bitcoin.
There are many platforms these days that allow individual investors to buy and sell cryptos. Just be aware that some exchanges charge up to 4% commission fee for each trade. So look for apps that charge little or even no commission.
While Bitcoin today commands a five-digit price, there is no need to buy an entire coin. Most exchanges allow you to start with as much money as you are willing to spend.
Learn more: Here’s how much money an average middle-class American household makes – how do you stack up?
Bitcoin ETFs
Exchange-traded funds have grown in popularity in recent years. They are traded on the stock exchange, so it is very convenient to buy and sell them. And now investors can also use them to get a share of Bitcoin stock.
For example, ProShares Bitcoin Strategy ETF (BITO) began trading on NYSE Arca in October 2021, marking the first US bitcoin-linked ETF on the market. The fund holds bitcoin futures that trade on the Chicago Mercantile Exchange and has an expense ratio of 0.95%.
Investors can also consider the Valkyrie Bitcoin Strategy ETF (BTF), which debuted a few days after BITO. This Nasdaq-listed ETF invests in bitcoin futures and charges an expense ratio of 0.95%.
Bitcoin Stocks
When companies tie some of their growth to the crypto market, their stocks can often move in tandem with the coins.
First, there are bitcoin miners. Computing power is not cheap and energy costs can be considerable. But if the price of bitcoin increases, miners like Riot Blockchain (RIOT) and Hut 8 Mining (HUT) are likely to receive increased attention from investors.
Then there are intermediaries like Coinbase Global (COIN) and PayPal (PYPL). When more people buy, sell, and use crypto, these platforms benefit.
Finally, there are companies that simply hold a lot of crypto on their balance sheets.
Example: MicroStrategy Enterprise Software Technologist (MSTR). Its market cap is less than $3 billion. Still, its bitcoin count has reached around 132,500 as of December 27, 2022, a stock worth around $3.4 billion.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
