Bitcoin Vs. Netflix: How Would You Decide?

As I write, Bitcoin has a market capitalization of $90 billion.

Netflix (NFLX) has a market capitalization of $86 billion.

So the market, in effect, is saying that these two assets are worth virtually the same.

But can this possibly be true?

I asked my analysts which asset they’d prefer to own…

The entertainment dynamo with its 100 million subscribers?

Or Bitcoin, which presently has 16.5 million “coins” in circulation?

My team’s response will likely forever alter the way you value assets.

Go With the Most Valuable Assets

Clearly there’s a big difference between owning an entire business and owning shares or coins.

The problem with owning a large asset is you can’t just sell it at the top. It requires finding a very rich “greater fool” — and they don’t grow on trees.

So I’d rather own the entity with substantial and very attractive business prospects. Which is clearly Netflix.

With Bitcoin, the only “real” asset is the blockchain technology, which is not patented. And it’s already been improved upon by several other cryptocurrencies.

Plus, Netflix can adapt its business when necessary to maintain or improve its market position over the long term.

Bitcoin offers no such assurance.

True, cryptocurrencies are enjoying an astounding upward trajectory. (Click here for the best cryptos to buy now.) But it’s not certain that Bitcoin will maintain its position against its competitors.

Crypto All the Way

Man, this is a tough one.

Netflix is a fantastic company that has completely — and profitably — disrupted the film and TV industries.

To be sure, expenses have skyrocketed as the firm licenses exclusive content. But subscriber growth keeps beating Wall Street’s most ambitious estimates.

I think this stock has got plenty of room to run as it continues to smash up the entertainment industry.

But which full entity would I rather own?