It’s been a strange couple of years for crypto holders. After the Crypto Winter of 2022 and 2023, there were signs that things were on the up, though there was a sense of disjointedness. We saw Bitcoin sail to all-time highs, exceed $120,000, yet no altseason to talk about. Then there was the slow grind downwards as Donald Trump entered the second year of his second term.
Some holders are disheartened. You can really see it on “crypto Twitter,” F ear and Greed Indexes, and other platforms, yet there are bright spots, too. Indeed, the crypto industry has made several bets on the future that, if realized, will transform the entire industry.
By bets, we mean setting the stage in the hope that something happens, not in the same way as, say, betting on the Stanley Cup. It’s about the hopes and dreams of those builders and holders who have weathered storms down the years, from Mount Gox the FTX collapse to an aggressively anti-crypto SEC under Gary Gensler.
Some of the “bets” below are speculative and not meant to be too serious, whereas others are based on real use cases that crypto has been building out for years. But these EIGHT bets underpin the general hopes of the global crypto community:
Tokenization of real-world assets
It’s the big one, isn’t it. Imagine a future where every stock, asset, property, and so on was on-chain and tokenized. We don’t want to pick a winner in this race, but it has obviously been a very big deal for projects like Chainlink, as well as others like Quant and Ondo. It’s so tantalizing because big financial institutions – the kind that shied away from crypto for years – keep hinting that it will happen.
The return of retail
We are somewhat torn on the prospect of this. For a start, some crypto bulls really, really underestimate the bad rep that crypto got after the retail mania of the early 2020s. It’s going to take something special to bring them back. On the other hand, some argue that retail never went away. After all, you can buy crypto with ease these days. Alas, the idea that retail investors will suddenly return en masse to pump your bags seems far-fetched. Possibly a soberer, more ordered return if there is another altseason soon.
The ETFs don’t backfire
The day BlackRock launched its Bitcoin ETF was an incredible moment in crypto history, feeling like the tipping point where institutions took the sector seriously. There are arguments against it, though, not least the fact that there is a sense that makes Bitcoin less democratic.
Strategic national reserves
When Donald Trump got elected for the second time, all the talk was of a US crypto treasury, which in turn would likely open the floodgates for other countries to follow suit. Some obviously do – El Salvador, for instance – and some probably do without advertising it. But could you imagine a future where countries were aggressively buying BTC, ETH, SOL, etc.?
Blockchain gaming
To be honest, blockchain gaming was the dream that didn’t deliver – at least, not yet. The idea is sound, and it really makes sense for concepts like trading in-game collectibles, and so on. We simply need the killer game that really hits the mainstream. The key is that the games become playable without financial incentive, and that any tokens underpinning the games feel like a logical addition. This is the kind of spark that could bring retail back.
The Clarity Act
Crypto isn’t beholden to the US only, but we know that it act as a driver for the entire market. At the time of writing, The Clarity Act – which would set the blueprint for crypto’s legal future – remains in limbo. There seems to be a fair amount of political will to get it over the final hurdles in a dysfunctional US Congress, but it’s not certain. The tailwinds from its passing could be immense.
Low interest rates
Some might argue that crypto weathered high inflation and high interest rates quite well, given that Bitcoin reached an all-time high, but others argue it was in spite of those things. The problem now, however, is that the conflict in the Middle East and other aspects, like tariffs, will likely make central banks cautious.
Elon Musk and the Everything App
We’ll end with something truly speculative, but based on some elements of truth. For years, Elon Musk has been promising to turn X into an everything app, which would include payments in crypto. Head of Product Nikita Bier recently launched Cashtags on the platform, which is great. But we’d love something more substantial: crypto payments and trading embedded into a social media app would transform the entire industry.