Ten Reasons to Firmly Believe in the Return of the Crypto Bull Market

Author: Rektdiomedes, The Daily Degen

Compiled by: PANews

The cryptocurrency industry has experienced multiple "deaths," yet each time it manages to rise again. In this spirit, we analyze the top ten reasons why the cryptocurrency market can not only continue to survive but also thrive and even experience explosive growth in the coming years.

Reason 1: Stablecoins Have Started to Play the Role of "Dollar as a Service"

Today, stablecoins have proven to be a "sticky use case" for cryptocurrencies, especially in the current global environment where demand for the dollar is so high. Fundamentally, stablecoins are a simple concept but come with specific advantages such as: programmable, permissionless, borderless, low-cost, fast settlement, interoperable, and high liquidity.

For people in developing countries, stablecoins are playing the role of "dollar as a service," a phenomenon that is particularly evident in countries like Pakistan and Argentina, where people can remit money globally without navigating multiple complex "intermediaries." Moreover, on-chain stablecoins not only signify a better monetary system but also a better "legal" system. Ethereum provides reliable "law" (code is law) globally to anyone with an internet connection, and stablecoins along with smart contracts will become an indispensable part of the global economy, just as we cannot imagine today's world without the internet.

Reason 2: Cryptocurrencies Have Better Payment Efficiency

Anyone running an online business using on-chain stablecoins knows that the efficiency of crypto payments is 100 times higher than using traditional companies like Payoneer/Wise. Sometimes, using traditional payment services like Payoneer/Wise can even be a nightmare due to their inefficiency and outdated regulatory requirements.

In this regard, fintech analyst Boaz conducted an in-depth analysis on his personal social media, listing seven current cross-border transfer solutions from traditional financial institutions, but unfortunately, each one is incredibly complex. In contrast, with the rise of Layer 2, on-chain costs are becoming increasingly lower, and with the support of stablecoins, a payment tool that is clearly superior to traditional banking has been created.

Reason 3: Cryptocurrencies Are Being Adopted by More Institutions

Currently, the likelihood of spot Bitcoin ETFs being approved is increasing, and more authoritative institutions in the financial industry are expressing support for Bitcoin (and in many cases, for DeFi as well). In fact, Wall Street seems to have realized that it is better to profit from the public's enthusiasm for cryptocurrencies than to try to fight against it.

In this regard, no one seems to have a clearer understanding than Larry Fink, CEO of BlackRock, who in 2017 called Bitcoin "a tool for money laundering widely used for illegal gains," but by 2023, he has changed his tune to say, "Bitcoin is very internationalized and will surpass any currency, becoming an alternative international asset, similar to 'digital gold.'"

Reason 4: Privacy/Account Abstraction

Many current projects lack support for privacy, which hinders mainstream business demand for adopting crypto technology, but this situation is changing. Privacy is crucial in financial transactions, as Vitalik Buterin stated, "Without [privacy], Ethereum will fail because all transactions (and POAPs, etc.) will be publicly viewable by anyone." The most significant effect of increasing on-chain privacy protection will be to facilitate the migration of more "traditional businesses" to the blockchain, such as AP/AR, payroll, balance sheet management, accounting, etc.

Reason 5: The Global Economy Is Becoming Increasingly Digital

Over the past decade, global business has become more "online"—remote work, cryptocurrencies, artificial intelligence, social media, etc., have all become part of this online shift. As this evolution accelerates, the advantages of internet-native crypto assets/infrastructure will become increasingly apparent compared to existing bank-based systems that are ill-suited for the online world. Today, the global economy is becoming increasingly flattened, a trend that is favorable for cryptocurrencies, whose applicability is growing stronger. In emerging markets like Nigeria and the Philippines, online economic participants are essentially able to operate without relying on traditional global banking systems.

Reason 6: Dollar Depreciation/Reflexivity

Clearly, there is no political will for fiscal tightening in the West, and even Powell's interest rate hikes only highlight fiscal dominance issues. The surge in U.S. interest expenditures has led to an expanding budget deficit, creating a "fascinating" feedback loop where dollar depreciation actually raises the nominal price of crypto assets, further catalyzing speculative fervor and stimulating public interest in cryptocurrencies, thereby promoting adoption.

Reason 7: Personal Sovereignty

The U.S., Canada, and Western Europe are experiencing decline in social, cultural, demographic, and economic aspects. This seems to be an undeniable fact, and as things inevitably worsen, along with the escalation of the aforementioned sovereign debt crisis, the value proposition of permissionless and self-custodied cryptocurrencies becomes exceptionally important.

Reason 8: "Fateful" Bullishness

In the context of a more disordered global economy, the traditional upward mobility path seems to have become less realistic for ordinary people. More and more individuals hope to become "rich overnight" through speculation, thus turning their attention to the cryptocurrency market, which is also a backdrop for the "fateful optimism" surrounding cryptocurrencies.

While this idea is not worth encouraging, it is an important variable driving the upward movement of the cryptocurrency market.

Reason 9: Alignment with Corporate Cultural Transformation

In traditional companies, everyone works in a "small cubicle," leading to a strong rejection of this work culture. This paradigm shift has been ongoing since the 1990s and has accelerated in recent years. Cryptocurrencies align with this "rejection" trend in many ways. To some extent, corporate cultural transformation is a downstream effect of the digital economy and represents a positive shift in people's mindset.

Reason 10: Intellectual Capital

The final reason is quite simple: cryptocurrencies continue to grow because they attract the smartest, wisest, and most creative young people on the planet. The greatest thinkers of our generation are building in various fields of the on-chain economy; rather than betting on cryptocurrencies, it is more accurate to say they are betting on this vast source of intellectual capital.

Do you think there are other reasons? If you have any opinions or thoughts on the above ideas, feel free to let us know!