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.
Image source: Getty Images
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).
