For nearly a full year, the stock market has been in all-out rally mode. The tech-heavy Nasdaq Composite and broad-based S&P 500 have bounced a respective 98% and 74% since hitting bear market lows on March 23.
However, these gains are peanuts compared to the performance of cryptocurrencies over the past year and beyond.
The promise and peril of crypto
According to data from CoinMarketCap, the aggregate value of the universe of digital tokens was $1.5 trillion as of March 1, 2021. For context, that’s up from $245 billion one year earlier and less than $8 billion five years ago. Investors’ love for crypto has sent a variety of digital currencies “to the moon,” as optimists like to proclaim.
For crypto bulls, the buy thesis really depends on your digital currency of choice. For Bitcoin (CRYPTO:BTC), it’s the 21 million token limit and its growing utility with brand-name businesses. If it’s Dogecoin (CRYPTO:DOGE), it’s the support it’s received from the likes of Elon Musk, the CEO of Tesla Motors and one of the richest people on the planet. There’s also Ethereum, which offers smart contracts that could revolutionize how supply chains are tracked. Perspective means everything when it comes to investing in crypto.
But this perspective also means recognizing potential flaws. For example, Bitcoin’s acceptance as a percentage of total U.S. businesses is exceptionally small, and it’s not even the best payment option in the financial space among crypto. As for Dogecoin, it lacks true differentiation and has been pumped up by retail investors on social media.
Perhaps even more worrisome is the fact that all next-big-thing investments over the past quarter century have seen their bubbles burst. This isn’t to say there won’t eventually be survivors or standouts in crypto, so much as to point out that investors have a history of overestimating the impact of new technologies.
Pass on crypto and pile into these disruptive growth stocks
Rather than putting your money to work in the untested crypto space, consider buying into growth stocks that can deliver true disruption. The following three growth stocks have promising futures and should make you a whole lot richer.
The healthcare sector is home to some of the most exciting innovation you’ll ever see. Teladoc Health (NYSE:TDOC) aims to honor this track record of innovation by disrupting how patients are cared for.
Teladoc is the largest provider of telehealth services in the United States. As you can imagine, the coronavirus disease 2019 (COVID-19) pandemic was a major boon to its business. On a year-over-year basis, total visits more than doubled from 4.14 million to 10.59 million. Though international visits were up 71%, the bulk of this increase was derived from the U.S. (184% year-over-year visit growth).
The thing is, Teladoc didn’t need a pandemic to succeed. It’s been growing sales by…