We've heard all this talk about the demise of cryptocurrencies over the last year, yet they've been showing great resilience, and with that in mind, here are ten reasons why cryptocurrencies will not only survive, but thrive in the years to come.
Stablecoins have now clearly demonstrated the "sticky use case" of cryptocurrencies.
There is a huge global demand for US dollars in particular, and stablecoins are increasingly meeting that demand.
To date, the most prominent examples of this have been in countries such as Pakistan and Argentina, but the value advantages of stablecoins are equally important in Western economies.
2. Excellent financial infrastructure
Following the above, the rise of extremely cheap block Spaces, such as through second layer scaling solutions, coupled with the popularity of stablecoins, has built a payment mechanism that is unquestionably superior to the traditional banking system.
Anyone who has used on-chain stablecoins to run an online business knows that it is 100 times more efficient than relying on services like Payoneer/Wise. The latter are often troubled by the need to use inefficient and outdated traditional financial infrastructure.
It seems increasingly likely to see the approval of a Spot Bitcoin ETF, and a growing number of respected voices in traditional finance are voicing their support for Bitcoin (and in many cases decentralized finance).
Indeed, Wall Street seems to have finally decided that it would rather make money from the public's enthusiasm for cryptocurrencies than try to fight them.
Perhaps there is no better representation of this than Larry Fink's intellectual shift in cryptocurrency.
4. Privacy/Account abstraction
The lack of privacy-enabled options has already hindered the adoption of cryptocurrencies in mainstream business needs, but solutions from projects like @silentdao_ and others will provide a huge boost in this direction in my opinion.
5. The growing digital economy
The dominant theme of the decade seems to be the increasingly digital nature of global business. Remote working, cryptocurrencies, artificial intelligence, social media, and more are all part of it.
As this evolution accelerates, Internet-based crypto assets/infrastructures will increasingly demonstrate their superiority over existing bank-based systems in adapting to the online world.
This is especially true when considering the increasingly flat world economy, with online economy players in emerging markets such as Nigeria and the Philippines essentially "leap-over" the traditional global banking system.
It is clear that there is no political will for fiscal austerity in the West, and even Powell's rate hike only highlights the problem of fiscal dominance, as interest payments in the US surge, leading to larger budget deficits...
This creates a fascinating cycle in which currency depreciation raises the nominal price of crypto assets, further catalyzing a speculative frenzy that sparks public interest in them, which in turn drives adoption.
7. Individual sovereignty
I'm an optimist by nature, but I don't think anyone can deny that places like the United States, Canada, and Western Europe are in gradual decline socially, culturally, demographically, economically...
As things inevitably get worse, and as the aforementioned sovereign debt crisis escalates, the permission-free and self-custody value advantages offered by cryptocurrencies become extremely important.
8. Fatalistic bullishness
As things become more chaotic, traditional pathways to upward mobility become less realistic for the average person, and the public's propensity for gambling and more "depraved" forms of speculation increases...
This constitutes what I call a sense of "fatalistic bullishness" about the success of cryptocurrencies...
While this is not a positive development, I think it is an important variable when discussing cryptocurrency success.
9. Consistency with cultural change
In many ways, cryptocurrencies are riding a growing wave of rejection of office culture.
This paradigm shift has been underway since the 1990s, but has accelerated rapidly in recent years...
This is clearly partly a downstream effect of the digital economy, but it is also more profound, representing a spirit of profound positive change away from the Kafkaesque "wormism" of late Western culture.
10. Intellectual capital
In the end, I think perhaps one of the strongest reasons why cryptocurrency is destined to grow 10x is that it attracts the brightest, brightest, and most creative young people on the planet. The greatest thinkers of our generation are all building in the on-chain economy in different fields.