The Bitcoin price is near record highs! This is why I’d much rather buy UK shares in my ISA

The recent tear-up in the Bitcoin price is showing no signs of relenting. Earlier today, prices of the digital asset soared to its highest since December 2017 around $18,460. Light profit-taking has forced Bitcoin back from those three-year peaks but it remains within striking distance of current record highs north […]

The recent tear-up in the Bitcoin price is showing no signs of relenting. Earlier today, prices of the digital asset soared to its highest since December 2017 around $18,460. Light profit-taking has forced Bitcoin back from those three-year peaks but it remains within striking distance of current record highs north of $19,700.

The cryptocurrency has been a star performer in 2020. It’s rocketed 150% since January 1 as investors have increasingly see it as a terrific ‘safe haven’ for these uncertain times. And some analysts reckon Bitcoin prices have much further to run. Analyst Simon Peters of investment platform eToro reckons values could hit $20,000 before Christmas.

Will Bitcoin sink or soar?

Sure, Bitcoin might be ripping it up right now, causing investors to pile in ever-greater numbers. But the currency’s capacity to spring higher on a sixpence is what makes it such a dangerous investment in my opinion. I’d much rather use my cash to buy UK shares today.

For one, I’m not convinced that Bitcoin’s rise on flight-to-safety grounds is built on solid foundations. As analyst Shane Oliver of AMP Capital comments:

[Bitcoin’s] huge volatility hardly makes it a safe haven as a store of value. I have far more confidence in the $50 note in my wallet retaining its value over time than Bitcoin, which seems to bounce around like a yo-yo.”

New virtual money concept, Gold Bitcoins

Investors in Bitcoin today need to recall how the cryptocurrency crashed after reaching those record peaks three years ago. It slumped around 25% just a week after hitting those all-time highs. And it had more than halved in value within just six weeks.

I don’t see any reason why Bitcoin couldn’t sink again following 2020’s stratospheric gains. Questions over its role as a safe haven aren’t the only reason I think a correction could occur. Eternal doubts over the intrinsic value of Bitcoin also threaten to send prices south again.

Getting rich with UK shares

As I say, I won’t be taking a risk with Bitcoin any time soon. It’s impossible to say where crypto prices will be five weeks from now, let alone what level they’ll be at in five years. I’d much rather continue investing in UK shares. And particularly so after the 2020 stock market crash.

The average yearly return for long-term UK share investors comes in at at least 8%. This means that someone like me who invests £500 a month can expect to make a whopping £704,275 after 30 years.

It’s possible that Bitcoin could be worth 10 times that amount in three decades. Or it could end up being worth zero. I’m not prepared to risk the chance of retiring in luxury on that £704-odd-thousand by gambling on cryptocurrency markets.

Besides, investing in UK shares after the 2020 stock market crash offers the chance to beat that 8% average annual return. I can buy quality shares in my Stocks and Shares ISA that’ll rocket in value as the economic recovery takes on. And there are stacks and stacks of top-class stocks for me to select from to supercharge my long-term returns too.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

More reading

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The post The Bitcoin price is near record highs! This is why I’d much rather buy UK shares in my ISA appeared first on The Motley Fool UK.

ASNF

Next Post

Inaugural Salesforce Developer Group Meeting for Bella Vista, Western Sydney, Australia & Winter ’21 Release – What’s new in the Declarative (CLICKS) and programmatic (CODE)

Thu Nov 19 , 2020
Inaugural Salesforce Developer Group Meeting for Bella Vista, Western Sydney, Australia & Winter ’21 Release – What’s new in the Declarative (CLICKS) and programmatic (CODE) We had an amazing Inaugural Meeting with Bella Vista (Western Sydney), Australia, Salesforce Developer Group on Nov 6th 2020. Thank you Vamsi Krishna for sharing your inspirational […]