Governments, enterprise, gaming: Who will drive the next crypto bull run?

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In his monthly crypto tech column, Israeli serial entrepreneur Ariel Shapira covers emerging technologies in cryptocurrency, decentralized finance (DeFi), and blockchain, as well as their role in shaping the 21st century economy.

The crypto market, like any other, operates in cycles. Although digital assets are known, if not infamous, for being more volatile than many other types of assets, their price action still follows a familiar pattern of ups and downs. Some of this, like Bitcoin’s (BTC) four-year cycle, is largely due to the intrinsic rules of the algorithm – more specifically, halving the rewards for miners. Off-chain factors, such as US tax reporting rules, can also play a role.

However, while market logic dictates change, the logic itself remains largely unchanged. In other words, in the same way that a bull run eventually runs out and hits a plateau, the bears eventually lose their grip on the market as well, making way for another rally.

For now, of course, the market is still recovering from the Terra crash and many other pressures that have been lacking in the past few years. While attempts to bounce back may be shaky, and as much as every red currency has been compared to what it was just a few months ago, the global crypto landscape is swaying and running waiting for another bullish run. So, where could it come from?

Related Topics: How to Survive in a Bear Market? Tips for beginners

national governments
Just a few years ago, the idea that bitcoin could be legal tender in any given country seemed like a far-fetched illusion. However, after Bitcoin’s bold gambit in El Salvador, the Central African Republic (CAR) joined the fray in late April, granting Bitcoin and other cryptocurrencies legal tender status.

These two countries make an interesting comparison. It is now well known in the crypto space that remittances from abroad make up a large part of El Salvador’s budget, and this fact was seen as the economic rationale behind the experiment. While the operation is reported to be fragile, the country’s government is shopping for bitcoin, adopting the “buy dip” ploy.

With CAR, things couldn’t be more different. The economy of the war-ravaged country remained sick for some time. Moreover, only about 10% of the country’s population has access to the Internet, according to World Bank data. In other words, cryptocurrency use is likely to be restricted to a small portion of the population – and given the geopolitical and domestic context of the move, the prospects can indeed be murky.

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