President Joe Biden’s student loan forgiveness program has caused some controversy, that’s for sure. Some suggest that this program could encourage more speculative purchases, as these consumers feel enriched with less debt. For those looking to buy crypto, now may be the time to capitalize on this potential catalyst.
However, many suggest that canceling student loans may do little to stimulate demand. This is because the debt that will be canceled is not a direct injection of capital into the economy. In addition, student loan repayments were halted for almost two years. This means that the purchasing power of individuals will remain the same, at least for those with federal student loans.
That said, there’s a reason investors are optimistic about this potential catalyst for next year. It comes on top of interest rates, which could fall if the tone of the Federal Reserve changes again. And while the Fed has indicated it will likely remain hawkish for some time, there is reason for hope at this time.
So, for those looking for cryptos to buy, here are three main options to consider.
Cryptos to buy: Bitcoin (BTC-USD)
Any list of the best cryptos to buy should start with Bitcoin (BTC-USD). The largest cryptocurrency in the world, it is synonymous with this industry itself.
Indeed, when it comes to institutional capital, Bitcoin remains the first option to consider. For those watching how fund managers treat this sector, Bitcoin remains the gold standard to watch. Over time, it is likely that this major token will be the barometer that will determine the overall amount of capital flows into the crypto industry, simply because Bitcoin will likely continue to be the primary investment vehicle for silver. clever.
Considering Bitcoin’s historical track record of over a decade, the performance of this token is remarkable. Despite various declines over its lifecycle, Bitcoin has recovered every time. And with the network’s recent Taproot upgrade ameliorating Bitcoin’s user privacy concerns, there’s a lot to like about this token’s long-term upside potential.
Those betting on more retail and institutional capital entering this space may want to consider Bitcoin ahead of the aforementioned potential catalyst.
Ethereum (ETH-USD) is a unique crypto project in that this network is the first to be set up with smart contracts in mind. As a result, Ethereum has become what many consider the cornerstone of the DeFi sector.
Although it was hit hard during this crypto winter, the price of the Ethereum token has started to come back. Always volatile, Ethereum is a token with its own unique catalyst that investors focus on.
Indeed, the upcoming merger could be the biggest update the crypto world has ever seen. This upgrade will shift Ethereum’s network from a proof-of-stake validation mechanism to a proof-of-work protocol. This should lead to a power consumption reduction of around 99% for the Ethereum network. For those worried about the environmental impact of crypto, that’s a good thing.
The question is whether other big networks like Bitcoin will follow. Either way, for now, Ethereum remains a vibrant choice for investors looking for cryptos to buy in this environment.
Cryptos to buy: Cardano (ADA-USD)
gimbal (ADA-USD) is another cryptocurrency that can be a great buy amid a boom in student loan forgiveness spending. Cardano is among the largest networks to have developed a proof-of-stake consensus mechanism. As a result, this network has garnered impressive interest from developers in recent years.
Now, while the crypto boom may be winding down, there are reasons to consider Cardano here. Yes, Etheruem is moving to proof-of-stake. This could pose risks for Cardano from a competition perspective.
However, for projects looking to diversify away from Ethereum due to its high fees (which are unlikely to be resolved by the merger), demand for Cardano is likely to remain robust in the long term. This is one of the central theses for owning ADA right now.
All three tokens look like solid bets for long-term investors looking for a reason to buy now. A boom in student loan forgiveness spending may or may not occur. However, these three tokens are each poised for a long-term upside should investors turn bullish at some point.
As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.