Bitcoin shot up to new heights today after the news of Tesla’s (NASDAQ:TSLA) recent Bitcoin investments hit the market yesterday. At 9 am ET on Tuesday, Bitcoin — the over a decade old cryptocurrency — was trading at US$46,300 after posting an intraday high near US$48,200.
The Bitcoin rally
Investing legend Warren Buffett and Berkshire Hathaway chairman and CEO never liked cryptocurrencies. About a year ago, he said that “Cryptocurrencies basically have no value and they don’t produce anything,” in a CNBC interview. Back then, he also made it clear that neither he owns any crypto nor will he own it ever. Interestingly, Bitcoin’s value against the U.S. dollar has appreciated by more than 400% since then.
The Elon Musk-led Tesla’s investments have raised questions about Buffett’s extremely critical views about the cryptos. Are Musk and Tesla right to buy Bitcoins? Or was Buffett right when he bashed the cryptocurrency by calling it worthless? Let’s discuss and try to find out.
Buffett’s experience or Musk’s revolutionary views
With Tesla’s huge stakes in Bitcoin, there is no doubt now that Musk is strongly bullish on the cryptocurrency. Tesla also plans to start accepting Bitcoin as a form of payment for its products going forward.
Musk — who last month became the world’s wealthiest person — is popular for his revolutionary views on various subjects. Most of his ventures like SpaceX, Neuralink Corporation, and The Boring Company are based on these radical ideas to change the world.
Buffett is considered one of the best investors ever. When he calls cryptocurrency worthless, he’s speaking from his seven decades-long experience. It’s not a joke to consistently make money — like Buffett — from investing for the long-term.
What made Musk the richest person?
We shouldn’t forget that it wasn’t Bitcoin or any other cryptocurrency — but Tesla stock — that made Musk the richest person. At the end of 2019, he owned about 170.4 million shares or about 18% of the electric carmaker’s total shares. The electric car demand soared in 2020 despite the COVID-19 woes that took Tesla stock 743% higher in 2020.
You might not want to risk your hard-earned money simply based on Musk’s wish to make cryptos mainstream. Especially if you have a small risk appetite or saving for your retirement, staying away from ongoing crypto trading mania would keep your investment portfolio safe.
Instead, you can buy some high-growth stocks to let your savings grow at a fast pace without worrying much about the extreme risks of the cryptos market.
A great opportunity in the EV market
The demand for lithium-ion batteries is rising significantly as the electric vehicle (EV) market growing exponentially. Lithium Americas (TSX:LAC)(NYSE:LAC) is a Vancouver-based resource company. It’s focusing on benefiting from the upcoming EV revolution.
The company is currently constructing two major lithium development projects. One of its lithium projects called Thacker Pass is located in Nevada, United States — not far away from Tesla’s Gigafactory-1. Lithium Americas’ second project is being built in Jujuy, Argentina. The company expects to get all required permits for its Thacker Pass project this year.
Lithium Americas stock has seen 1,300% gains in the last five-years. Its stock could shoot up further as it gets all required permits in 2021. Fast-growing EV demand makes its stock a far better investment option than Bitcoin or any other cryptocurrency — while following Buffett’s value investing rules.
Looking for even better HIGH-GROWTH TECH STOCKS? Here’s a FREE LIST for you:
Motley Fool Canada's market-beating team has just released a new FREE report that gives our three recommendations for the Next Gen Revolution.
Click on the link below for our stock recommendations that we believe could battle Netflix for entertainment dominance.
David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool recommends BlackBerry and BlackBerry. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.