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