Introduction

Despite Bitcoin's recent surge and the excitement surrounding new Bitcoin exchange-traded funds (ETFs), the crypto industry still faces challenges in attracting a broader investor base. The latest findings from the Motley Fool Ascent's 2024 Cryptocurrency Investor Trends Survey reveal that the primary demographic engaging with crypto remains Gen Z and young millennial men.

Surprisingly, one common reason cited by skeptics for avoiding crypto investments is its perceived high cost. However, this notion may not hold water upon closer examination. Here's why.

Bitcoin's Perceived High Value

The most prevalent interpretation of crypto being too expensive is often simplified as Bitcoin sticker shock. The current price of Bitcoin exceeding $70,000 may deter potential investors from acquiring it. Yet, it's crucial to note that one can purchase fractional shares of Bitcoin, making it accessible at a range of price points. Modern crypto platforms permit trading even with minimal amounts, enabling ownership of negligible fractions of Bitcoin without hefty investments. This demonstrates that acquiring Bitcoin does not require a substantial initial outlay compared to purchasing high-priced assets outright.

While the notion of Bitcoin's high price may dissuade some investors, alternative methods provide avenues to diversity. For instance, emerging Bitcoin ETFs facilitate exposure to Bitcoin at lower costs, thus offering a gateway for obtaining cryptocurrency at more manageable prices. By capitalizing on these options, individuals can navigate the psychological barrier of Bitcoin's apparent high cost and enter the crypto space more suitably.

The Perception of Bitcoin's Value

Another perspective on Bitcoin's expense pertains to its valuation relative to its current trading price. As Bitcoin recently peaked at $73,750, some may speculate that the cryptocurrency has peaked and opt to await a downturn before investing. Despite this cautious approach, the prevailing industry outlook differs significantly. Wall Street forecasts indicate a target of $100,000 by the end of 2024 and $150,000 by the close of 2025. Projections by prominent figures like Cathie Wood suggest a high potential Bitcoin value of $3.8 million by 2030, projecting a substantial return on investment. Hence, Bitcoin's trajectory suggests undervalued potential at current levels, challenging the perceived notion of being overvalued.

Avoiding High-Risk Crypto Ventures

An unforeseen consequence of considering Bitcoin inflated may prompt individuals to steer towards exceptionally low-priced meme coins, offering minimal buy-in rates. For instance, meme coins like Shiba Inu, trading at minuscule figures under $1, may attract attention due to their affordability. However, the viability of meme coins as a sound investment compared to established cryptocurrencies like Bitcoin remains debatable. Delving into speculative, niche coins as opposed to fractional Bitcoin shares may overlook the core principle of achieving value equivalent to the investment made.

Conclusion

In essence, Bitcoin's value perception shifts the narrative from being cost-inhibitive to an opportunity for substantial returns when invested prudently. By looking beyond the surface-level price comparisons and understanding Bitcoin's long-term growth potential, individuals can make informed investment decisions rooted in market dynamics rather than assumptions of high upfront costs.