Why "Integration" has become the value investment research theme for the "Next Bull Market"

Written by: ThePrimediaDAO founder Jerry

As the crypto world has developed, discussing "Where will the next bull market happen?" can be traced back to the original intention behind Bitcoin's creation. However, what Satoshi Nakamoto did not anticipate was that cryptocurrencies not only failed to dethrone the US dollar but actually made it the biggest beneficiary. In the crypto economic system, mainstream stablecoins are all based on the traditional US dollar as their underlying currency system. The Federal Reserve has not issued a single coin, yet it has encompassed the crypto market and completed the iteration from "Gold · Power · Dollar" to "Power · Dollar" and now to the crypto world—"Power · Digital Dollar." Without a strong opposing force, the era of the "Digital Dollar" is approaching.

Through the relentless efforts of early builders in the blockchain world, the infrastructure of the crypto world is continuously improving, and the crypto ecosystem is actively transitioning from being limited to investment/speculation attributes like ICOs, DeFi, and NFTs to the integration of industry and finance. We judge that the keyword for the next bull market is integration— the fusion of web3 technology with various industry ecosystems; the integration of the crypto economy with the financial system of the zhu (government)quan world.

"Digital Dollar" leads at halftime, but the center of the crypto economy will not be in the US. Why?

Under the repeated turmoil of the SEC, Ripple, which is committed to building a world-class open payment network, is struggling; under the heavy pressure of US regulation, Zuckerberg's ambitious Libra has been completely dismantled; and many crypto asset projects like BlockFi are trudging along under US regulation, possibly collapsing just because a regulatory dialogue disrupted their development rhythm…

The US dollar has become the biggest beneficiary of cryptocurrencies, and the US government will not allow Ripple or Libra to ruin the great situation of the "Digital Dollar" unification. Therefore, even if the technological and industrial center of the web3 world may still be in Silicon Valley, the center of the crypto economy will not occur in the US.

So, where will the center of the crypto economy take place? This is worth discussing, as it relates to the world financial landscape and order in the era of the crypto economy.

The purpose of opposition is not destruction but construction. However, if there is no possibility of a better order, the result of opposition will be destruction. The light shining through the window opened by Satoshi Nakamoto gives an opportunity to oppose the traditional world financial order centered around the US dollar— with the crypto economy at its core, the entire global economic system will be reshaped, and the world financial landscape and order will also be rebuilt.

A note on "integration": The fusion of DeFi and non-financial use cases of web3

Having experienced the development of the last bull market, "liquidity mining" and "vampire attacks" have pushed the narrative of DeFi to its limits. DeFi has expanded innovative gameplay within its track, but its endogenous demand needs to extend beyond its own track.

In the crypto economic system, when DeFi integrates with the energy released by the web3 industry, it will elevate the narrative of the crypto market bull market to an epic level. If the growth logic of traditional financial capital markets can only come from the main line of economic growth, DeFi can match an excess number of users and user funds in both depth and breadth, showcasing unprecedented economic development at an exponential level.

In summary, the theme of the next bull market "integration" includes three dimensions: the fusion of web3 technology with various industries; the integration of the crypto economy with zhu (government)quan finance; and the fusion of DeFi with the web3 industry. In this way, with the crypto economy at its core, the entire global economic system will be reshaped, and the world financial landscape and order will also be rebuilt.

The necessity, feasibility, and research value of adapting a "public chain for government-issued currency"

A few days ago, a small country announced the issuance of a national token on the Tron network, which immediately brings to mind the image of Sun Yuchen wielding a sickle against the small sovereign governments of the world.

Issuing a national token on Tron is clearly not the best choice. In September, Norway announced the construction of a central bank digital currency (CBDC) sandbox on Ethereum, but this was the result of months of deployment through the Nahmii Ethereum scaling solution selected via bidding. Issuing a government currency on Ethereum is evidently more prudent than on Tron, but this requires deep support from Ethereum, which many small and medium-sized countries find difficult to obtain.

Of course, would developing their own be more appealing? China, Russia, Japan, and the European Central Bank are all developing their own, but many small and medium-sized countries do not have such capabilities.

So, is there a public chain suitable for government-issued currency? What conditions must such a public chain meet? Does the token of this public chain have good value capture ability? Will the financial landscape of the dollar-based currency system behind government-issued currency change as a result? How do we analyze the contradictions and games between the US "Digital Dollar" and the integration of many sovereign countries into the crypto economic system?

The role and function of NFTs in the "integration of crypto economy and sovereign finance"

Once the national token systems of most sovereign governments are completed, using NFTs for identity/asset verification to achieve the integration of zhu (government)quan world assets with the crypto economy may resolve the contradiction between "the over-issuance of currency in the dollar-based currency system and the shrinkage of personal wealth assets" that Bitcoin could not solve. Regarding the fundamental role of NFTs in the blockchain world, I had an in-depth discussion with Element founder Wang Feng in July 2021; for details, please refer to "The Role of NFTs in the Metaverse's Basic Construction and Value Capture Logic."

The PrimediaDAO will launch a series of forums themed "Searching for the Next Bull Market: Integration" in the new features section of Discord, with "The Integration of Crypto Economy and Sovereign Finance" as the first stop, to jointly discuss the value research opportunities brought by "public chains, NFTs, DeFi, and the reshaping of the financial order of the dollar-based currency system" in this process.

The vision for ecological co-construction: At The PrimediaDAO, we will complete content creation through division of labor and collaboration and discover good projects through content; we will co-build the crypto ecosystem tree (TPLink) and strive to efficiently link collaboration between projects to empower the prosperity of the crypto ecosystem.