Bitcoin: The Top Canadian Stock to Buy for the Next Decade!

These three Bitcoin stocks offer investors superior potential for years to come and may just be the top picks for the next decade.

New virtual money concept, Gold Bitcoins

Image source: Getty Images

These days there are several top stocks to buy for the next decade. Whether you’re looking at technology stocks or green energy, there are plenty of opportunities to consider for 2021 and beyond. One of the best assets to consider, though, may just be Bitcoin.

The key to finding the best investments are businesses with significant long-term potential. That’s one of the main reasons why cryptocurrency is so attractive today.

It’s taken a long time, over a decade, but finally Bitcoin is becoming more and more popular as investors and companies continue to see its incredible potential.

And like any industry benefiting from economies of scale, the more people using Bitcoin and the more companies that are accepting cryptocurrency, the faster its popularity will grow in the future.

But what are some of the benefits of the cryptocurrency?

Benefits of Bitcoin

Bitcoin originally gained popularity for its technology. Blockchain is revolutionary and opens up millions of possibilities. Some have even considered it as revolutionary as the internet.

In addition to its technology, though, Bitcoin offers monetary benefits too. The currency is decentralized, meaning nobody or no government controls it. It’s similar to gold in that there is a finite amount of Bitcoin.

This is why investors tend to favour Bitcoin during times of inflation. That’s one of the biggest reasons why investors have been buying the cryptocurrency over the last year.

So these days, with interest rates extremely low and most equities trading near all-time highs, investors are looking to alternative assets such as Bitcoin to diversify some of their capital.

It’s only continuing to become easier to buy Bitcoin too. So as more people jump on the bandwagon, the price will naturally continue to increase.

Why Bitcoin’s a buy today

After the recent run-up in the cryptocurrency’s price, you may be wondering why it’s worth an investment today.

Even though investors are buying the cryptocurrency today for several reasons, including to avoid the risk of inflation, it’s still a great long-term investment.

The appeal of Bitcoin only increases as more people own it and use it. Therefore, to really get its technology off the ground, you need mass adoption.

Investors have recognized that and see the long-term potential. However, with so many people, as well as companies, jumping on the bandwagon recently, that long-term timeline might be getting moved up.

All of these catalysts are only continuing to push the price of Bitcoin up, which is why unlike the last major rally in 2017, most investors agree this time it’s not a bubble.

That doesn’t mean that there isn’t downside risk. Bitcoin is still extremely volatile and wouldn’t be immune to a major selloff in a market correction. However, if you’re buying it today for the long-term, there shouldn’t be anything to worry about.

The top stocks for the next decade

If you’re looking to gain exposure to Bitcoin, these are three of the most popular stocks to buy.

Bitfarms Ltd is a Bitcoin miner. This is one of the most volatile ways to invest in the cryptocurrency. The industry is highly competitive too. So in addition to watching the price of Bitcoin, you’ll also have to monitor the operations of the business, which adds another degree of risk to the investment.

HIVE Blockchain Technologies is also a cryptocurrency miner. There’s slightly less risk with a HIVE investment, though, because the company has diversified operations. In addition to Bitcoin, it mines other high-potential cryptocurrencies.

So although many of the same risks persist, you’re not tied to the sole performance of Bitcoin.

The most straightforward way which is by gaining exposure to the cryptocurrency itself with The Bitcoin Fund.  That way, you just have to worry about Bitcoin’s price long-term and not the profitability of a mining business.

Bottom line

Bitcoin offers a tonne of long-term potential. However, it’s still extremely volatile. So although it’s worth an investment, investors should keep in mind how risky it can be.

This means only investing a small portion of your portfolio in the cryptocurrency and ensuring you make a long-term investment.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned.

More on Investing

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »