Bitcoin is currently sitting at about $3,400 per coin.
It hasn’t been this low in over a year, leading many to wonder, “Is now the time to buy?”
Today, we’ll answer that question — and hopefully we’ll provide you with a safe way to profit in the short-term and the long-term.
Have We Hit a Bottom?
Before we can decide if now’s the time to buy bitcoin, first we have to ask ourselves a question:
Do we believe that bitcoin has hit bottom?
As I mentioned earlier, bitcoin hasn’t traded this low in over a year. But here’s the thing:
Just because its price is down, that doesn’t mean it can’t drop further.
In fact, if you look at bitcoin’s chart, you’ll see it’s still in a downtrend…
Furthermore, it’s traded far lower than this in the past…
So what’s to keep it from dropping to $2,000, or even $1,000 per coin?
What It’s Worth
At the end of the day, the only way to know if bitcoin — or any asset, for that matter — is “cheap,” is to know what it’s truly worth.
This is a concept Warren Buffett calls “intrinsic value.”
Most stocks have an “intrinsic value.” That’s because they represent a share of ownership in an actual company — a company that generates profits.
But like many cryptos, bitcoin’s price isn’t based on the profits of a business. Instead, its price is completely dependent on investor demand.
In other words, it has zero intrinsic value.
Therefore, there’s no way to tell whether bitcoin is cheap…
And there’s no way to tell if now is a safe time to buy it.
A Crypto With “Intrinsic Value”
However, another crypto has fallen by 90% this year, too.
And this one offers us a much safer way to play the crypto markets.
You see, this crypto is backed by a real business model. And that means we can determine what this crypto is worth, and when to buy it.
I’m referring to Ethereum (ETH).
In some ways, Ethereum is similar to bitcoin. For example, it’s a digital currency that can be stored and used online.
But Ethereum has many attributes that make it unique. You see, Ethereum was designed to be a “crypto platform” — the type of platform that other businesses could be built on top of.
Think of it like the iPhone: the iPhone is the “platform,” and all the apps in the iTunes App Store are built on top of it.
And here’s the best part: the more apps that are built on Ethereum, the more valuable Ethereum becomes.
That’s because, in order to use the platform and enable their businesses to function, the apps have to buy Ethereum. Therefore, the more apps there are, the more demand there will be for Ethereum — and in turn, the more valuable Ethereum will become.
Ethereum clearly has intrinsic value.
Is Now the Time to Buy?
Like Bitcoin, Ethereum has had a rough ride lately.
Its price has dropped from about $1,400 to less than $90.
But when the crypto markets recover, we expect Ethereum’s intrinsic value will help it rally quickly and strongly — far more than other cryptos.
And this could help investors earn big, quick gains.
That’s why we recently added a considerable amount of Ethereum to our portfolio, and we’ll likely add more if it drops to the $50 range.
Keep in mind, things could get worse before they get better…
But we’re confident in Ethereum’s long-term prospects, so we’re willing to sign up for what could be a bumpy ride.
You’ll need to decide for yourself if your portfolio can withstand that sort of volatility.
If it can, Ethereum could be a fantastic long-term investment.