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Bear Market Chicken Soup | The Daily Degen Editor-in-Chief: 10 Reasons Why the Cryptocurrency Industry Will Grow 10 Times in the Next Few Years

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Bear Market Chicken Soup | The Daily Degen Editor-in-Chief: 10 Reasons Why the Cryptocurrency Industry Will Grow 10 Times in the Next Few Years

The editor-in-chief of the cryptocurrency information blog "The Daily Degen," rektdiomedes, recently published an article aimed at rebuilding confidence in the crypto community titled "10 Reasons Why the Crypto Industry Will Grow 10x in the Next Few Years." What are the reasons mentioned, and do you agree with them as well?

This is a translation and summary of the article. For any uncertainties, please refer to the original text.

10 Reasons Why Cryptocurrency Will Grow 10x in the Next Few Years

Reason One: Stablecoins

rektdiomedes stated that stablecoins have clearly demonstrated their "rigid demand" as cryptocurrencies, especially with the significant global demand for the U.S. dollar, and stablecoins are increasingly meeting this demand.

While the most prominent examples have emerged in countries like Pakistan and Argentina so far, the value proposition of stablecoins is equally significant in Western economies.

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Reason Two: Robust Financial Infrastructure

rektdiomedes believes that extremely cheap block space is on the rise, such as through L2, coupled with the proliferation of stablecoins, has created a payment tool that is undeniably superior to traditional banking systems.

Anyone engaged in online commerce using stablecoins knows that the efficiency has increased by 100 times compared to relying on services like Payoneer/Wise.

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Reason Three: Institutional Adoption

rektdiomedes believes it is increasingly likely to see the approval of a Bitcoin spot ETF, while more and more traditional financial institutions are expressing support for Bitcoin and DeFi.

Wall Street seems to have finally decided that instead of trying to fight against cryptocurrencies, they can make money from the public enthusiasm they generate. This shift is evident in the change in attitude of BlackRock CEO Larry Fink.

See Larry Fink's Transformation: A Comparison of BlackRock's Attitude towards Bitcoin, Binance Zhao Changpeng: They Have Started to Join

Reason Four: Privacy and Account Abstraction

The lack of privacy protection has long constrained the mainstream business applications of cryptocurrencies. However, with privacy solutions like Silent Protocol emerging, rektdiomedes believes this will provide significant momentum in this area.

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Reason Five: Growing Digital Economy

rektdiomedes believes that the main topics of the past decade revolve around the increasing digitization of the global economy, remote work, cryptocurrencies, artificial intelligence, social media, etc.

With the acceleration of this evolution, internet-based crypto assets and infrastructure will increasingly demonstrate their advantages over existing bank-based systems, which are less suited to the online world.

Moreover, when considering the trend of the world economy becoming increasingly flat, this point becomes particularly evident, as online economic participants in emerging markets like Nigeria and the Philippines are effectively "leapfrogging" traditional global banking systems.

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Reason Six: Devaluation and Reflexivity

rektdiomedes believes that Western countries lack the political will to implement fiscal austerity, and even Powell's interest rate hikes only highlight the problem of fiscal dominance, as the U.S. interest expenses surge, leading to larger budget deficits.

Additionally, this creates a feedback loop where devaluation increases the nominal price of crypto assets, further catalyzing speculative frenzy, thus increasing public interest and adoption.

Reason Seven: Individual Sovereignty

rektdiomedes describes himself as an optimist, but he believes that no one can deny that regions like the U.S., Canada, and Western Europe are facing decline in social, cultural, demographic, and economic aspects.

As the situation inevitably worsens and the aforementioned sovereign debt crisis escalates, the value proposition provided by cryptocurrencies of permissionless and self-custody becomes particularly important.

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Reason Eight: Fatalistic Bullish Sentiment

rektdiomedes believes that traditional upward mobility pathways for the working class have become less realistic for the average person, leading to an increasing public tendency towards gambling and more "indulgent" forms of speculation.

While this is not a positive development, it remains an important variable in any discussion about the success of cryptocurrency.

Reason Nine: Consistency with Cultural Shifts

rektdiomedes believes that cryptocurrencies are riding a wave that aligns with the increasingly strong rejection of office farm corporate work culture. This paradigm shift has been ongoing since the 1990s but has accelerated significantly in recent years.

This is partly an obvious downstream effect of the digital economy but also carries deeper significance. It represents a highly positive spiritual shift emerging from the Kafkaesque "insect personhood" of late-stage Western culture.

Note: This metaphor is derived from the representative work "The Metamorphosis" by Franz Kafka, describing the story of the protagonist waking up one day to find himself transformed into an insect. The various plot elements attempt to provoke reflection on whether we, as humans in human form, still retain our humanity, while the insect without human form seems to possess more humanity.

Reason Ten: Intellectual Capital

Finally, rektdiomedes believes that the most compelling reason why cryptocurrency is destined to grow tenfold is that it attracts the smartest and most creative young people on Earth.

rektdiomedes thinks that the greatest thinkers of this generation are building in different areas of the chain economy, and to bet against the rise of cryptocurrency would seem like betting against this vast source of intellectual capital, which is something he is not willing to do.

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