Enthusiasm surrounding cryptocurrencies has certainly cooled meaningfully in the past couple of years. However, this doesn't mean investors should completely write off the risky asset class.

Bitcoin (BTC 1.26%), for example, is slowly becoming a more legitimate financial asset that trades more like a growth tech stock than like an unnecessary dog-inspired meme digital token. Plus, there are some compelling arguments for owning Bitcoin. 

As of this writing, Bitcoin's price still is 50% below its all-time high in November 2021. And this is after it has bounced back this year, up 105% (as of Oct. 26). 

The current dip might prove to be a fantastic opportunity to buy Bitcoin. Here's why. 

Ark Invest is bullish 

Cathie Wood, who heads up the investment management firm Ark Invest, and her colleagues are extremely bullish on Bitcoin. Besides Bitcoin fitting her firm's strategy of only investing in the most disruptive and innovative companies, just from a fundamental perspective, Ark Invest makes the case for a much higher price. 

In the base case scenario, Bitcoin's price could skyrocket from its current levels and reach more than $680,000 by 2030. That sounds very optimistic. 

But I think the analysis holds some weight. Wood and her team believe that Bitcoin will find its way into more portfolios not just for individuals, but for central banks, institutional investors, and even companies. And from a utility perspective, Ark thinks that Bitcoin will be used as a currency in emerging economies, as well as a tool to send remittances.

Clearly, buying Bitcoin at a sizable discount to its peak price naturally increases the potential upside should it even come remotely close to what analysts at Ark see happening. 

Bitcoin's favorable traits 

I'm someone who is bullish on Bitcoin over the long term, but I have no clue what the price will be five or 10 years from now. So I think investors would be smart to start with a small position in their portfolios, with the plan to add more as their knowledge about Bitcoin grows. 

Anyone who puts the time in and actually tries to study Bitcoin will find it a very compelling asset. Take the fixed supply cap. There will only ever be 21 million coins. This hard ceiling is in Bitcoin's code, and it's almost certainly never going to change. 

If there's an asset out there that has absolute scarcity like this, then it's not hard to understand why people would want to own it. All else equal, if supply remains constant, but demand rises, the price should go up as well. 

And Bitcoin is beginning to look like a smart asset to own, especially in light of the financial troubles facing governments. As of this writing, the U.S. has $33.7 trillion in debt, and this figure doesn't include underfunded liabilities like Social Security and Medicare. That debt balance has historically gone up, coinciding with money printing and inflation. 

Imagine you take out a new credit card to help pay the balance on an existing credit card, but repeat this process over and over again. This is what the U.S., and many other dominant economies, have basically been doing. Because the dollar is the global reserve currency, the U.S. has this power. But something has to break. The government can't keep borrowing and borrowing and borrowing with no consequences. 

On the surface, Bitcoin appears to be a solution to the problem of government-backed money. Of course, I have no idea how this all plays out. But I think people will at least be intrigued by Bitcoin, which is decentralized and borderless, as a potential insurance policy against something cracking in the current financial system.

At a price of about $34,000 today, Bitcoin could be one of the best purchases you ever make.