The Motley Fool

I think the Bitcoin price is going to crash; here are some ASX shares instead

I think the Bitcoin price is going to crash, so I would rather buy shares in growing ASX companies like Pro Medicus Limited (ASX: PME) and Catapult Group International Ltd (ASX: CAT).

Is a Bitcoin crash coming?

bitcoin price

Data sourced from Coindesk

Since the beginning of June, the price of Ethereum (black line) has fallen from over $400 to its current $194. For the math wizards out there, that’s a fall of more than 50% — in around seven weeks. Yikes.

Meanwhile, Bitcoin fell from $3,000 to $2,000. Then, it recovered and currently trades around $2,700.

However, tomorrow is August 1st.

D-day for the cryptocurrency, according to some experts.

August 1st is the date which the Bitcoin overlords are destined to meet up behind a secret waterfall in the Swiss Alps to discuss the future of the digital ‘currency’.

(the ‘waterfall’ part was a joke — I’m not sure where they are meeting)

But the overlords are meeting to set the future of the currency.

Some ‘miners’ of Bitcoins want to do one thing with the currency, while others in the Bitcoin community are eager for it to become a truly global and secure digital currency for transactions.

Should I sell now?

I think Bitcoin could fall on August 1st. However, I wouldn’t bet my life savings on a big fall.

And rather than using a fall in the Bitcoin price as an opportunity to load up on some coins, I’m going to watch it from afar.

You see, the Bitcoin currency has some significant limitations and many hurdles it must leap if it is to become the pervasive currency it is supposed to be.

And speculative ‘assets’ have a habit of coming back to bite the average Joe, like me, when they least expect it.

2 ASX shares

So while the returns from Bitcoin, Ethereum and Ripple appear to be otherworldly, I’m sticking to the tried and true realm of share markets.

And if you are in the market for speculative ‘investments’ that have the potential for outsized returns, you too could stick shares of companies like Catapult Group and Pro Medicus on your watchlist.

The share prices of these two Melbourne-based tech companies are up 250% and 400%, respectively, over the past three years.

Best of all, they are real companies selling real products, based in Australia and regulated by ASIC and the Australian government.

One day, they might even pay dividends!

That’s my kind of D-day.

1 Massive Dividend Stock to Buy Today

FREE REPORT! Click here to discover the Motley Fool’s #1 ASX dividend recommendation

You may not know the name of this market leader, but it's making waves in Asia and already boasts a term-deposit-crushing dividend of almost 5%. So what’s not to like?

Simply click here to grab your free copy of this up-to-the-minute research report right now.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. You can follow him on Twitter @OwenRask.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.