President Joe Biden’s student loan forgiveness program has spurred some controversy, to be sure. Some suggest this program may entice more speculative buying as these consumers feel enriched with less debt. For those seeking cryptos to buy, now may be the time to capitalize on this potential catalyst.
However, many suggest student loan forgiveness may not do much to boost demand. That’s because the debt that will be forgiven isn’t a direct injection of capital into the economy. Additionally, student loan payments have been paused for nearly two years. This means individuals’ spending power will remain the same, at least for those with federal student loans.
That said, there’s a reason why investors are bullish on this potential catalyst for next year. It comes in addition to interest rates, which may come down should the Federal Reserve’s tone shift again. And while the Fed has indicated it’s likely to remain hawkish for some time, there are reasons to be hopeful right now.
Thus, for those looking for cryptos to buy, here are three top options to consider.
Cryptos to Buy: Bitcoin (BTC-USD)
Any list of top cryptos to buy ought to start with Bitcoin (BTC-USD). The world’s largest cryptocurrency, it is synonymous with this sector itself.
Indeed, as far as institutional capital is concerned, Bitcoin is still the primary option to consider. For those watching how fund managers treat this sector, Bitcoin remains the gold standard to look at. Over time, it’s likely that this top token will be the bellwether which determines how much capital flows into the crypto sector overall, simply because Bitcoin is likely to continue to be the primary investment vehicle for smart money.
Given Bitcoin’s historical track record of more than a decade, this token’s performance is notable. Despite various declines over its lifecycle, Bitcoin has recovered each and every time. And with the network’s recent Taproot upgrade improving the privacy issues of Bitcoin users, there’s a lot to like about the upside potential for this token over the long-term.
Those banking on more retail and institutional capital flowing into this sector 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. Accordingly, Ethereum has become what many think of as the lifeblood of the DeFi sector.
Despite being hit hard during this crypto winter, Ethereum’s token price has begun to come back. Still volatile, Ethereum is a token with its own unique catalyst investors are focusing in on.
Indeed, the upcoming Merge could be the biggest upgrade 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 is expected to result in an energy usage reduction of approximately 99% for the Ethereum network. For those concerned about the environmental impact of crypto, that’s a great thing.
The question is whether other major networks like Bitcoin will follow suit. Regardless, for now, Ethereum remains a high-momentum pick for investors looking for cryptos to buy in this environment.
Cryptos to Buy: Cardano (ADA-USD)
Cardano (ADA-USD) is another cryptocurrency that can be a great buy amid a student loan forgiveness spending boom. Cardano is among the largest networks to have developed a proof-of-stake consensus mechanism. Accordingly, this network has seen impressive developer interest in recent years.
Now, while the crypto boom may be fizzling out, there are reasons to consider Cardano here. Yes, Etheruem is shifting to proof-of-stake. This could pose some risks for Cardano from a competition standpoint.
However, for projects looking to diversify away from Ethereum due to its high fees (which aren’t likely to be solved by the Merge), demand will likely remain robust for Cardano over the long-term. This is one of the central theses to owning ADA right now.
All three tokens look like solid bets for long-term investors looking for a reason to buy right now. A student loan forgiveness spending boom may or may not happen. However, these three tokens are each poised for long-term upside should investors turn bullish at some point.
On the date of publication, Chris MacDonald 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.