NAIROBI (CoinChapter.com) — While both Bitcoin and Nvidia stock offer the potential for significant returns, Bitcoin looks to be the more promising asset in 2024. Despite impressive growth by Nvidia, Bitcoin’s unique qualities and the upcoming “halving” event create a compelling investment case as we look toward the rest of the year.
Bitcoin’s Bullish Trajectory
Bitcoin’s unique monetary model, specifically its predictable supply reduction through “halving” events, sets the stage for potential price appreciation. The next halving, scheduled for April 2024, will cut Bitcoin’s inflation rate in half. Historically, halving events have often sparked significant price increases for BTC.
Bitcoin Price chart, Source: TradingView
Adding fuel to the fire, Bitcoin’s supply on exchanges is shrinking to unprecedented lows, amplifying the impact of the upcoming halving. If demand continues to outstrip supply, BTC’s price could easily break through the $100,000 barrier, a milestone many crypto enthusiasts are eagerly anticipating.
MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P
— Michael Saylor
(@saylor) February 26, 2024
Institutional investment in Bitcoin is on the rise. Companies like MicroStrategy have made massive bets on BTC, with its recent purchase of an additional 3,000 BTC further solidifying this trend. Increasing institutional adoption lends credibility to Bitcoin and could attract even more investment, driving its price higher in the long run.
Nvidia Stock Continues to Fire on All Cylinders
On the other hand, Nvidia stock is up over 230% in the past year thanks to booming sales growth across its various business segments. In particular, demand for its graphics cards from crypto miners and PC gamers reached unprecedented levels in 2023. Additionally, its data center and AI chips are being rapidly adopted to power cutting-edge computing applications.
NVIDIA price chart, Source: TradingView
Over the trailing twelve months, revenue sits at $32 billion, with analysts forecasting continued 20-30% annual growth over the next two years. Unlike Bitcoin, Nvidia stock trades at a reasonable forward P/E ratio of around 30. The company also pays a small dividend and invests billions into research to maintain its leadership position in technology.
In the short term, the volatility of both Bitcoin and Nvidia stock opens up opportunities for significant returns, though the potential for downside risk must also be considered. For investors with a higher risk appetite, Bitcoin’s unique supply dynamics and growing institutional interest make it a particularly enticing option for 2024.
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