In the next four years, let's avoid a bull run.

Source: Cointelegraph Original: "Avoiding the Bull Market in the Next Four Years"

Author: Adam Silver, Co-founder and CEO of Plural Energy

Last month, the new government settled in Washington and promised to review outdated cryptocurrency regulation policies. Although the "crypto czar" and the new chairman of the SEC are still adjusting to their roles, the radical deregulatory trend has already gained industry support well before November 2024.

With Bitcoin reaching historic highs, mainstream media frequently reports on the influx of corporate funds into the crypto space, making the industry's cheers for President Trump's promise to create a crypto-friendly regulatory era unsurprising. However, as industry practitioners, we must consider the key question: Should meme coins define our industry? Or should we build a new financial system that can drive transformative changes in the pillars of the American economy?

Get to the essence

A bull market is coming, but it doesn't have to be a "bubble bull market" – especially for those who are looking forward to institutional investors. When it comes to attracting new users, assets, and use cases, the biggest historical challenge has always been how to demonstrate to the masses the true value of blockchain beyond news headlines. Traditional media often portrays the crypto world as an out-of-control liberal rhapsody – full of scams, memes, and fraud. Every piece of news about runaway scams, hacks, and lawsuits adds to the walls of skepticism that real-world asset entrepreneurs must climb.

When entrepreneurs struggle to persuade traditional industries to migrate real asset use cases onto the blockchain, PR firms attempt to reshape perceptions through rhetoric: saying "blockchain" instead of "cryptocurrency"; referring to "digital equity" rather than "tokens"; using "on-chain" in place of "DeFi"; and incessantly emphasizing "smart contracts." However, this is far from a simple PR rhetoric issue; it is a systemic challenge that undermines the credibility of transformative technologies in the industry.

Application scenario question

When the on-chain transaction volume mainly comes from meme coins, the proposition of "application scenario" becomes more and more complex. With nearly 13 million meme coins in 2024 creating a market cap of $120 billion, this numbers game is fun when prices rise, but most investors end up losing money. Even well-known meme coins are 50 times more volatile than Bitcoin. It is estimated that 30% of meme coins are premeditated scams in nature, and these losses are often borne by new users, forming a vicious circle - when newbies encounter scams as soon as they enter the chain, it just confirms the worst predictions of all crypto skeptics.

While meme coins and NFTs have a place in the ecosystem, cultural assets will always be an integral part of the portfolio. But the real value of blockchain is not in the windowless casino built by code, but in the real world where the sun shines. Democratizing finance and promoting transparency to solve systemic problems in areas such as energy, healthcare, and infrastructure is the vast future of this technology.

Assess the situation

Political polarization may exacerbate existing challenges. Browsing the discussion threads on social media after the election reveals that echo chambers in the industry are forming an increasingly polarized public opinion landscape, alienating a large number of potential users. Some opinion leaders have been mocking their peers who support the Harris-Walz campaign team throughout the fall, and this deliberate creation of opposition is weakening the universal appeal of the industry. When cryptocurrency technology becomes a political football, the entire industry will fall into crisis.

The Way to Break the Deadlock

Changing the industry's reputation is indeed difficult, but builders must prove to new users and the outside world that a bull market does not have to be a "low-quality bubble market." We need to create application scenarios that allow technology to demonstrate its value, showcasing the true treasure of the crypto field—DeFi. The results of years of cultivation in the decentralized finance ecosystem can now empower the real economy to bypass expensive intermediaries to obtain capital and financial products. When new users gain returns from products they understand, they will retain, increase their investments, and innovate together with blockchain natives.

In the process of development, we must be vigilant about the industry being represented by casino culture or extreme voices. We need to embrace crypto-friendly policies while avoiding the misuse of technology as a tool for political struggles. When blockchain achieves mainstream adoption, it must genuinely represent and serve everyone.

In other words, why not have a real bull market this time without any "bubbles"? We will ultimately be victorious.

Author Biography: Adam Silver is the co-founder and CEO of Plural Energy, a clean energy blockchain investment platform. He previously served as the head of financial automation products at ServiceNow and as a digital consulting advisor at Deloitte, and participated as a startup mentor in the early financing of several companies. He has an educational background from the Booth School of Business at the University of Chicago and the University of Pennsylvania.

Related topics: Artificial Intelligence (AI) agents and blockchain are redefining the digital economy.

This article is for informational reference only and does not constitute legal or investment advice. The views expressed are solely those of the author and do not reflect the views of Cointelegraph.