Bitcoin is in the news again. After registering a massive gain of over 300% last year, the cryptocurrency has already risen 33% to over US $ 38,500 in January 2021. On Thursday, it broke the US $ 40,000 mark for the first time. However, Bitcoin could be extremely risky to buy right now for most investors with a low risk appetite. You will understand these risks well if you already know what happened to the Bitcoin bubble in 2018.
Bitcoin is extremely risky
As cryptocurrencies gain popularity across the world these days, their future is still uncertain. Extreme volatility, unclear government regulations, and a heavy reliance on new technological developments make cryptos – including Bitcoin – a very risky investment.
While most of us have just gone through the pain of the uncertainties of the pandemic, it would be sheer folly to invite more uncertainty into our lives by investing in Bitcoin and other cryptocurrencies.
Big investors don’t like Bitcoin
These uncertainties are one of the main reasons Warren Buffett – the most renowned investor of our time – has sworn never to own Bitcoin or any other cryptocurrency.
But that doesn’t mean you shouldn’t expect good returns on your investments. The Canadian market still has many great stocks to offer – with the potential to beat cryptocurrencies in 2021. TSX.
An incredible TSX share to buy in 2021
Shopify (TSX: SHOP) (NYSE: SHOP) – the popular Canadian tech company – experienced significant growth last year. That growth sparked a strong rally in its stock with a 178% rise in 2020. Notably, Shopify’s stock also rose by over 170% in 2019 and generated an impressive positive return of 3,764% over the past five years. last years.
To give you a glimpse of its massive recent growth, its year-over-year (year-over-year) revenue growth rate has remained between 96% and 98% for the past two quarters. Additionally, Shopify’s quarterly profits have more than doubled on an annual basis in six of the last seven quarters.
It is just beginning
While Shopify’s recent financial and operational figures would be enough to wow anyone, it might just be starting.
Last year’s COVID-19 crisis is forcing more and more small and medium-sized businesses to develop and improve their online presence. And using Shopify’s multi-channel commerce platform is one of the best ways for most of them to do that. This is what has made this Ottawa-based tech company so popular lately.
In December, Shopify said in a press release that its Black Friday / Cyber Monday 2020 was up 76% from the previous year. This reflects the company’s ever-growing dominance in the field of commerce.
At the end of the line
Instead of risking your hard-earned money by investing in Bitcoin or any other cryptocurrency, tech stocks like Shopify could give you exceptional returns with much less risk. Shopify’s accelerated growth clearly suggests that it could be the next Bitcoin in 2021 when it comes to generating a solid ROI.
Much like Shopify, there are plenty of other small tech companies – which have been showing exponential financial growth lately – that could help you multiply your money in no time.
Tom Gardner owns shares of Shopify. The Motley Fool owns stocks and recommends Shopify and Shopify. Silly contributor Jitendra parashar has no position in any of the listed securities.