Bitcoin's Resurgence: From Criticism to Real-World Solutions in DeFi and DePIN

Is your social media feed filled with crypto enthusiasts celebrating Bitcoin's comeback? You’re not alone if you’re wondering, “How did we get here again?” or why the news said Bitcoin was dead.

Thanks to viral campaigns like Elizabeth Warren’s “Anti-Crypto Army,” the word "crypto" has become as controversial as investment banking was after the 2008 financial crisis. Critics who claimed crypto was a scam seemed insightful when FTX collapsed in 2022. But today, the kindest thing you can say about them is that they’re a bit lazy.

Bitcoin recently soared past $98,000. This surge is driven by companies like MicroStrategy and discussions about appointing a 'Crypto Czar.' Various sectors within crypto are tackling real-world problems effectively. For example, stablecoins link digital assets to fiat currencies like the U.S. dollar. They're gaining traction, especially in emerging markets where local currencies are unstable.

Decentralized finance, or DeFi, allows users to lend, borrow, and trade assets directly. This approach cuts out traditional financial middlemen. In places with limited banking access, DeFi offers a significant opportunity for financial inclusion. In a world rethinking trade and dollarization, these foundational elements provide a neutral platform for transactions while promoting the dollar’s use.

However, not all crypto projects provide clear value. Memecoins, which gain worth from social media buzz rather than practical applications, are divisive—even among crypto supporters. Take dogecoin, for instance. It has a market value that exceeds 94% of companies in the S&P 500, despite lacking a real product or business model. Recently, Chris Dixon from Andreessen Horowitz criticized memecoins for obscuring the sector's utility. If you're looking for reasons to label crypto a scam, you can find them in the memecoin world.

Since Sam Bankman-Fried’s downfall in 2022, a new concept has emerged: decentralized physical infrastructure networks, or DePIN. These networks allow individuals to contribute resources—like data or connectivity—in exchange for rewards. By crowd-sourcing infrastructure, DePIN projects can compete with established companies, offering cheaper and more accessible services.

The Atlantic has called DePIN “boring,” but these networks are changing how traditional industries operate. Currently, over 1,400 DePIN projects are in development, having raised more than $1 billion in venture funding. If you only rely on the Atlantic and Warren’s tweets, you might still think the industry is fraudulent.

A notable example is Helium, which crowdsources the deployment of mini-towers and hotspots to create a decentralized mobile coverage network. With over 120,000 active mobile plans, Helium provides affordable connectivity by distributing operating costs across the network. However, some reports have labeled Helium a scam and declared it a failure after its token price dropped 90% in 2022.

This view misses how Helium has shifted from an IoT network to a cellular provider. Such misunderstandings highlight how volatile token prices can overshadow real business progress. Crypto networks like Helium often adapt through volatility, even as extreme price swings fuel misleading narratives.

Perhaps this explains Trump’s interest in crypto. Both he and the crypto industry often face misrepresentation. Just like with MAGA, certain crypto figures get conflated with the entire industry. Those looking for a scapegoat find it easy to assign blame. This also sheds light on why many in the crypto community feel misunderstood.

Yes, there are crypto enthusiasts who support anarchy, and some have exploited this unregulated market for personal gain. As the failures at the end of the last cycle pushed mainstream media toward pessimism, it’s understandable that many believe the worst of crypto is yet to come. However, as real use cases in stablecoins, DeFi, and DePIN continue to emerge, it’s clear that the best of crypto is also on the horizon.