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3 Proof-of-Stake Cryptos to Buy Now in Case Congress Cracks Down

Regulation talk is inescapable for cryptocurrency. As the year trudges on, it looks like this chatter will only get louder; Russia is preparing regulations, and India just rolled out a robust plan for regulating digital currency. China has long been clamping down on it; now, it is preparing to test its own central bank digital currency (CBDC) on the world stage via the Olympic Games. Meanwhile, the U.S. is following suit, preparing its own sets of laws around crypto. Investors aren’t sure of what to expect from incoming policy, but they’re speculating on the cryptos to buy to best benefit from them.

a digital graph overlayed over hands typing and a pile of crypto coins
Source: Shutterstock

President Joe Biden is preparing to implement an executive order around crypto, possibly as early as this month. Congress, in tandem, is preparing its own meetings; policymakers will talk about stablecoins, and they will continue debates on crypto mining and energy consumption. Of course, energy consumption is one of the most heated issues around this topic, especially for a nation that’s polarized on “going green.” As a result, there are calls to ban the practice on U.S. soil.

Crypto mining isn’t a physical process like mining ore. Essentially, it is an energy-intensive process through which farms of computers solve puzzles in order to earn crypto. These cryptos are called “proof-of-work” coins, since transactions are validated using “proof” that the coins were legitimately mined.

A Crypto Mining Ban Could Open the Door for Proof-of-Stake Coins

The U.S. wouldn’t be the first nation to ban the practice. More and more countries are doing the same. These bans pose a threat to proof-of-work cryptos, though; with nobody to do the work of mining these cryptos, they won’t be a viable option for the future of digital currency.

This opens the door for proof-of-stake coins being the best cryptos to buy. Proof-of-stake coins are different, in that they require no mining. Instead, all of the coins are created at one time, and they are locked into a smart contract. When a new block of data needs to be created, the network taps one of the coin’s holders to mine the next block. The result is a much more energy-efficient network than that offered by proof-of-work.

If investors are anticipating a crypto mining ban, then buying into these coins ahead of time could be lucrative. And luckily for investors, there are lots of solid options. Consider these proof-of-stake cryptos to buy:

Proof-of-Stake Cryptos to Buy: Solana (SOL-USD)

Concept art of the Solana (SOL-USD) blockchain.
Source: Shutterstock

SOL isn’t just one of the hottest cryptos to buy among proof-of-stake coins right now; the network is becoming an undeniable force within the industry. The layer-1 network is promising to be one of the highest performing networks ever. It’s also rising meteorically as a non-fungible token (NFT) play that threatens to unseat Ethereum (CCC:ETH-USD).

Using the Solana network, users have access to any of 150 native dapps. These dapps vary greatly in offerings. Audius (CCC:AUDIO-USD), one of the most popular Solana offerings, allows users to stream music on the blockchain. Others, like Serum (CCC:SRM-USD), are more straightforward trading platforms or finance tools.

The biggest draw to using Solana over Ethereum, and part of the reason it has blown up in value and user base over the last six months, is Solana’s scaling ability. The network claims it can handle up to 710,000 transactions per second; on a day-to-day basis, the network sees over 2,000 transactions per second and processes them with ease. Ethereum, on the other hand, maxes out at less than 100 transactions per second. This massive transaction capability has made the network a go-to for NFT transacting in recent months, ultimately stealing 15% of Ethereum’s NFT trade volume from it.

The Solana network has its flaws, mainly that it sees outages with relative frequency. But, it also continues to stack up catalysts. Today, in fact, several Solana-native tokens began trading on Coinbase (NASDAQ:COIN), leading to a 15% gain in SOL prices.

Ethereum Co-Founder Charles Hoskinson Bets on Proof-of-Stake Via Cardano (ADA-USD)

Cardano (ADA) token with blue and orange digital background.
Source: Stanslavs / Shutterstock

Like Solana, the Cardano network is a burgeoning layer-1 ecosystem, aiming to supply users with an improved version of Ethereum. And thanks to Cardano’s upgrades throughout the second half of 2021, as well as the notable leadership within the network, it is poised to do just that.

Cardano is the product of Charles Hoskinson, a star in the blockchain space. Hoskinson came into the spotlight within the industry as one of the eight co-founders of the Ethereum network. Since departing from the platform, though, Hoskinson didn’t leave blockchain behind. Cardano’s founding is an attempt to directly compete with Ethereum.

Cardano operates similarly to Ethereum, looking to create a platform through which developers can create dapps and users can operate them. However, Cardano’s end-goal differs in that it isn’t content with just supplying the platform; rather, the network takes a more academic approach, aiming to expedite the adoption of blockchain technologies through rigorous scientific research.

Over the last several months, Cardano has finally begun offering the features that make it usable as an Ethereum alternative. September saw the rollout of smart contracts on the platform, allowing dapp development to really begin. Now, there are several dozen Cardano dapps available for use, and the number continues to grow by the day.

Proof-of-Stake Cryptos to Buy: Algorand (ALGO-USD)

Algorand logo in light blue against a simple dark-colored, futuristic-looking background
Source: shutterstock.com/Shizume

Algorand is yet another layer-1 network that’s driving the widespread adoption of blockchain technology for every day purposes. Launched in 2019, Algorand is a network with some skin in the game. It’s also drawing investors’ interest with frequency as it continues to broaden its offerings.

The Algorand network first came into the fold for many investors in the third quarter of 2021, thanks in huge part to the bombshell news that El Salvador would be accepting Bitcoin (CCC:BTC-USD) as legal tender. In September of last year, Algorand announced it would be helping the nation transition to crypto acceptance by creating the underlying infrastructure for it.

In the months since, Algorand has remained a hot topic for altcoin investors. Late September saw the project implement the Algorand Virtual Machine (AVM). With AVM, the network is able to provide developers with the ability to craft higher scaling dapps. Outside of performance improvements and infrastructure, the project is also working to break into the metaverse industry. Indeed, Algorand’s recent partnership with Playground Labs is bringing gaming and virtual reality experiences to the network.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/02/3-proof-of-stake-cryptos-to-buy-now-in-case-congress-cracks-down/.

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