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Here, too, Bitcoin appears to have the edge over Ethereum. The conventional wisdom is that Bitcoin can hit a price target of $1 million within the next five years, based on an exploding set of new use cases. That point of view has been supported by Cathie Wood of Ark Invest, Brian Armstrong of Coinbase Global, and Jack Dorsey of Block.

Growing tenfold in price within a short period of time might seem impossible. But, time and time again, Bitcoin has grown at an exponential rate. It soared from $1 to $10, then $10 to $100, then $100 to $1,000, then $1,000 to $10,000, and then $10,000 to $100,000. All of that took place in the span of less than 15 years. So why can’t Bitcoin once again grow from $100,000 to $1 million?

Ethereum, too, has been the subject of endless speculation about how much higher it might go. At one time, investors thought Ethereum might even surpass Bitcoin in market cap, due to how fast it was growing.

Right now, one of the most aggressive future price targets for Ethereum is $20,000. Given Ethereum’s current price of $3,150, that implies a nearly sixfold increase in price. That’s highly impressive, of course, but it falls short of Bitcoin’s potential tenfold price increase.

Based on the above, Bitcoin would appear to be the obvious winner. You really can’t argue with a cryptocurrency that has already minted 145,100 millionaires. Yes, Bitcoin can experience tremendous volatility. But in eight of the past 10 years, it has been the top-performing asset in the world.

Of course, I fully expect the growth rates of both Bitcoin and Ethereum to slow over time. If Bitcoin is indeed “digital gold,” as many crypto investors claim, shouldn’t its performance more closely track the long-term performance of gold? That might give an opening to Ethereum, which more closely resembles a tech stock than a commodity. And, over time, wouldn’t you expect tech stocks to outperform gold?

That being said, I can’t think of a better long-term investment than Bitcoin. As long as you’re prepared to deal with the inherent volatility of crypto, a patient approach should ultimately pay off. There’s no guarantee you’ll become a millionaire by investing in Bitcoin, but there are 145,100 people around the world who will tell you that your odds are going to increase markedly if you do.

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $562,536!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,096,510!*

Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 187% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of November 17, 2025

Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Block, and Ethereum. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.

Bitcoin vs. Ethereum: Which Is More Likely to Be a Millionaire Maker? was originally published by The Motley Fool

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Klarna Group.

The Price-to-Sales (P/S) ratio is a favored valuation tool for companies like Klarna Group because it focuses on revenue rather than earnings. This is especially useful for businesses that may be growing rapidly or not consistently profitable, since sales figures tend to be more stable and less affected by accounting adjustments than earnings.

Growth expectations and the overall risk profile significantly influence what would be considered a “normal” or “fair” P/S ratio. Companies with strong growth prospects, higher profit margins, or lower perceived risks typically command higher multiples, while riskier or lower-growth firms receive discounts. The Diversified Financial industry’s average P/S ratio stands at 2.27x, while Klarna’s peers are trading at an average of 3.27x. Klarna Group itself is currently valued at a P/S ratio of 3.64x, meaning investors are paying nearly $3.64 for every $1 of Klarna’s sales, which is above both industry and peer averages.

This is where Simply Wall St’s proprietary “Fair Ratio” provides an added edge. Unlike simple peer or industry comparisons, the Fair Ratio incorporates a company’s unique growth outlook, profit margins, market cap, and level of risk, giving a truer sense of what the stock’s multiple should be today. By factoring in these elements, the Fair Ratio aims to filter out timing-related market distortions and deliver a target multiple based on fundamentals rather than short-term sentiment.

In this case, Klarna’s P/S ratio is notably higher than its industry and peer averages. However, without a Fair Ratio value provided here for comparison, a direct conclusion can’t be drawn. Investors should continue to look for updates to the Fair Ratio for a more complete picture of Klarna’s valuation.

Result: OVERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1430 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there’s an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple yet powerful tool that allows you to tell your own story about Klarna Group’s future by connecting your perspective—your assumptions about fair value, revenue growth, and earnings—to a financial forecast. Narratives link the company’s business story to its numbers, showing how your outlook on Klarna translates into an estimated fair value and actionable insights.

On Simply Wall St’s Community page, millions of investors are already using Narratives to quickly visualize whether Klarna Group’s price is above or below what they believe it’s actually worth, helping them decide when to buy or sell. Narratives are updated automatically as new information comes out, keeping your view fresh and relevant in fast-moving markets. For example, some investors might see extraordinary upside and estimate Klarna Group’s fair value at $75, while others set a far more cautious target of $22, reflecting their unique stories and expectations for the business.

Do you think there’s more to the story for Klarna Group? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include KLAR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com