3 Cryptocurrencies to Buy as U.S. Debt Continues to Grow

Alex Sirois

Tue, Jun 25, 2024, 1:02 PM 4 min read

Investors concerned with U.S. debt don’t have to look far to find concerning statistics. At the end of 2023, publicly held U.S. debt reached 97% of gross domestic product (GDP). Debt is projected to reach 166% of GDP by 2054. I could go on and on about this but the important point I want to make is that it imperils the strength of the U.S. dollar, in turn strengthening the prospects of cryptocurrency.

So, for investors who worry that U.S. debt will irreparably weaken the U.S. dollar, cryptocurrency becomes a more reasonable investment. In that regard, it also makes sense to understand which fiat currencies are expected to strengthen in the coming decades. That’s a story for another article but for now, understand that soaring U.S. debt makes cryptocurrencies that much stronger.

With all that in mind, let’s take a look at three cryptocurrencies to buy as U.S debt continues growing every second of every minute of every hour of every day.

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Bitcoin (BTC-USD)

Bitcoin cryptocurrency with pile of coins, Vector illustrator

Source: Sittipong Phokawattana / Shutterstock.com

Bitcoin (BTC-USD) is the most obvious beneficiary of a scenario like that described above. Investors may ultimately move away from the U.S. dollar as a result of gross mismanagement over a long period.

Unsustainable levels of debt will harm the economy sooner or later and investors will want to get away from the centralized authority that caused the problem in the first place. Decentralization is one of the overarching narratives favoring Bitcoin.

It’s interesting to think about how much of a factor the decentralization narrative will be in the coming years as debt consistently surpasses GDP in the U.S. It is almost certain demand for Bitcoin will continue to rise as more and more investors understand that simple truth.

Bitcoin is gaining value because of its limited supply and tokenomics that reward fewer and fewer BTC for successful mining as time goes on. The combination of that and U.S. debt could have some wild effects on Bitcoin prices in the future.

Solana (SOL-USD)

Solana Coin (SOL-USD) in front of the Solana logo. Solana price predictions.

Source: Rcc_Btn / Shutterstock.com

Solana (SOL-USD), like all other cryptocurrencies, follows Bitcoin primarily. When Bitcoin rises so does Solana. When Bitcoin falls so does Solana. That’s the nature of all alt coins, they follow the leader.

The point then in relation to U.S. debt is that Solana is likely to rise as Bitcoin rises for the reasons I’ve mentioned above.

Solana is also likely to increase in value due to its own internal strengths. The overall benefit of Solana is that it processes transactions much quicker and cheaper than Ethereum (ETH-USD). That’s why it has become known as the Ethereum killer. It is a disruptive force. Developers appreciate Solana’s high speeds and low transaction prices.

Solana recently proved to be 46 times faster than Ethereum in a real world comparison test. It really feels like ethereum has everything to lose at the moment and that Solana has everything to gain. Buy it for its performance and buy it because cryptocurrencies should continue to appreciate as the U.S. lets its debt run rampant.

Shiba Inu (SHIB-USD)

Close-up shot of a Shiba Inu dog representing ShibaDoge Price Predictions.

Source: Shutterstock

Shiba Inu (SHIB-USD) is pure speculation in the world of cryptocurrency. That’s saying a lot because there is a lot of speculation occurring throughout the sector overall. However, I think some speculation is good.

Shiba Inu has become the 12th most valuable cryptocurrency overall. Insofar as meme coins can offer stability, Shiba Inu does. It’s established and has also returned 158% to investors over the past 12 months.

158% returns are a far cry from the returns that it provided investors a few years ago when it exploded into prominence. I certainly understand the assertion that Shiba Inu’s best days are behind it.

However, my whole point here is that some speculation is good and Shiba Inu continues to have the power to pop. There will certainly be other meme coins that outperform Shiba Inu in the near future and beyond but predicting them is nearly impossible. Thus, Shiba Inu is a reasonable choice for speculation in relation to increasing cryptocurrency prices as U.S. debt continues to spiral out of control.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.