10 Reasons Why Cryptocurrency Will Increase 10 Times in the Next Few Years

Given all the talk of cryptocurrency’s impending demise over the last year and its continued resilience, here are ten reasons why cryptocurrency will not only survive, but thrive in the years ahead.

1. Stablecoins

Stablecoins have now clearly demonstrated the “sticky use case” of cryptocurrencies.

In particular, there is huge global demand for the US dollar, and stablecoins are increasingly meeting this demand.

To date, the most prominent demonstrations of this have occurred in countries such as Pakistan and Argentina, but the value advantages of stablecoins are equally significant in Western economies.

2. Excellent financial infrastructure

Further to the above, the rise of extremely cheap block space, for example through second layer scaling solutions, coupled with the popularity of stablecoins, has created a payment mechanism that is unquestionably superior to the traditional banking system.

Anyone who has run an online business using on-chain stablecoins knows that it is 100x more efficient than relying on services like Payoneer/Wise, which are often plagued by the need to use inefficient and outdated legacy financial infrastructure.

3. Institutional adoption

It seems increasingly likely that we’ll see a Spot Bitcoin ETF approved, and more and more respected voices in traditional finance are expressing support for Bitcoin (and, in many cases, decentralized finance).

Indeed, Wall Street appears to have finally decided that it would rather make money from the public’s enthusiasm for cryptocurrencies than try to fight it.

Perhaps nothing represents this better than Larry Fink’s intellectual turn on cryptocurrency.

4. Privacy/Account Abstraction

The lack of privacy-enabling options has hampered the adoption of cryptocurrencies for mainstream commercial 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 work, cryptocurrencies, artificial intelligence, social media, etc. are all part of it.

As this evolution accelerates, internet-based crypto assets/infrastructure will increasingly demonstrate their superiority over existing bank-based systems in terms of their inability to adapt to the online world.

This is particularly true when considering the increasingly flat world economy, with online economic players in emerging markets such as Nigeria and the Philippines essentially “bypassing” the traditional global banking system entirely.

6. Depreciation/Reactivity

It is clear that there is no political will in the West to engage in fiscal austerity, and even Powell’s rate hikes only highlight the fiscal dominance problem as US interest payments surge, leading to larger budget deficits…

This creates a fascinating cycle in which currency debasement increases the nominal price of crypto assets, further catalyzing speculative frenzy, which in turn triggers public interest in them, which in turn drives adoption.

7. Personal sovereignty

I am optimistic 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, etc...

As events inevitably deteriorate and the aforementioned sovereign debt crisis escalates, the value advantages of permissionlessness and self-custody offered by cryptocurrencies become extremely important.

8. Fatalistic bullish sentiment

As things get more chaotic, traditional pathways to upward mobility become less realistic for the average person, and the public’s inclination toward gambling and more “degenerate” forms of speculation grows…

This adds up to what I call a sense of “fatalistic bullishness” about the success of cryptocurrencies…

While this isn’t a positive development, I think it’s an important variable when discussing the success of cryptocurrencies.

9. Alignment with cultural change

In many ways, cryptocurrencies are riding the growing trend of rejecting office culture.

This paradigm shift has been ongoing since the 1990s, but has rapidly accelerated in recent years…

Partly this is obviously a downstream effect of the digital economy, but it is also much more far-reaching, representing a spirit of profoundly positive change away from the Kafkaesque “insectism” of late Western culture.

10. Intellectual Capital

Finally, perhaps one of the strongest reasons I think cryptocurrency is destined to grow 10x is that it is attracting the best, brightest, most creative young people on the planet… The greatest thinkers of our generation are building in the on-chain economy in a variety of fields.