Bitcoin is in the news again. After posting a massive over 300% gain last year, the cryptocurrency has already risen by 33% to more than US$38,500 in January 2021. On Thursday, it crossed the US$40,000 mark for the first time. However, Bitcoin could be extremely risky to buy right now for most investors with a small risk appetite. You’ll understand these risks well if you already know what happened to the Bitcoin bubble in 2018.
Bitcoin is extremely risky
While cryptocurrencies are gaining popularity across the world these days, their future still remains uncertain. Extreme volatility, unclear government regulations, and high dependence on new technological developments make cryptos — including Bitcoin — make for a very risky investment.
When most of us have just experienced the pain linked with uncertainties due to the pandemic, it would be sheer foolishness to invite more uncertainty in our life by investing in Bitcoin and other cryptocurrencies.
Great investors don’t like Bitcoin
These uncertainties are one of the key reasons Warren Buffett — the most renowned investor of our times — has vowed never to own Bitcoin or any other cryptocurrency ever.
But it doesn’t mean that you shouldn’t expect great returns on your investments. Canadian market still has many great stocks to offer — with a potential to beat cryptocurrencies in 2021. Let’s take a closer look at one such amazing tech stock in TSX.
An amazing TSX stock to buy in 2021
Shopify (TSX:SHOP)(NYSE:SHOP) — the popular Canadian tech company — saw significant growth last year. This growth triggered a sharp rally in its stock as it rose by 178% in 2020. Notably, Shopify’s stock rose by more than 170% in 2019 as well and it has yielded an impressive 3,764% positive return in the last five years.
To give you a glimpse of its massive recent growth, its YoY (year-over-year) revenue growth rate has remained between 96% to 98% in the last couple of quarters. Also, Shopify’s quarterly profits have more than doubled on a YoY basis in six out of the last seven quarters.
It’s just getting started
While Shopify’s recent financial and operational figures would be enough to impress anyone, it could just be getting started.
Last year’s COVID-19 crisis is forcing more and more small- and medium-sized businesses to build and improve their online presence. And using Shopify’s multi-channel commerce platform is one of the best ways to do so for most of them. That’s what made this Ottawa-based tech firm so popular lately.
In December, Shopify said in a press release that its 2020 Black Friday/Cyber Monday rose by 76% compared to the previous year. It reflects the company’s consistently rising dominance in the commerce space.
Instead of risking your hard-earned money by investing in Bitcoin or any other cryptocurrencies, tech stocks like Shopify could give you outstanding returns with significantly less risk. Shopify’s accelerating growth clearly suggests that it could be the next Bitcoin in 2021 when it comes to yielding a solid return on your investment.
Just like Shopify, many other small tech firms — that are posting exponential financial growth lately — could help you multiply your money in no time.
Here’s a FREE LIST of such CHEAP TECH STOCKS, ready to rally in 2021:
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