Crackdowns from Government in Developing Nations Will Accelerate The Hyperbitcoinization Process
The concept of Hyperbitcoization is not quite as far flung or unrealistic as it would first appear. An article by Daniel Krawisz examines how bitcoin can become the first global cryptocurrency. That was when the term Hyperbitcoinization was coined.
Hyperbitcoinization can occur naturally and organically. Instead of cataclysmic events which force people towards cryptocurrency, people will naturally gravitate towards superior technology. After a phase of initial adoption, a tipping point is reached. This marks the end of the early adopter phase and the start of exponential growth. Once a technology reaches a certain phase, its growth becomes nearly unstoppable, such as the tablet, smartphone, and social media around 2005. At this point, the cost of rejection becomes more than the cost of adoption. Imagine a company refusing to use a website or a restaurant which does not accept credit cards.
The problem with hyperbitcoinization is that governments are not too fast to adopt and adapt and tend to govern it with bad policies. Some countries are friendly towards this inevitable change and clear the path through good regulations while there are many that don’t. People are forced to find alternative means to do so.
The world is moving towards a digitized economy and social life. What in the past required papers, nowadays can be done through a computer, mobile phone or any other digital device. Bitcoin adoption could be closely related to the process of digitizing everything. So, hyperdigitalization may trigger an hyperbitcoinization. It is important to mark that Bitcoin will be benefited since it was the first mover, and it has clearly proven to be reliable.
Argentina, Venezuela, Zimbabwe, and Turkey have shown that Bitcoin can be much more stable than a national currency. In Venezuela and Zimbabwe, citizens have experienced hyperinflation and saw how their savings were evaporating. In Turkey and Argentina, when their respective currencies started to plummet in the last months, LocalBitcoins and other platforms saw an increased volume.
Increased corruption will also be pushing individuals towards virtual currencies and Bitcoin. As governments take measures that do not benefit the general population, at some point, citizens would start to use Bitcoin. Privacy is a very important issue. Governments are increasingly trying to know everything about their citizens. Cryptocurrencies could be used by the population as a way to escape from this surveillance.
With Bitcoin, you own your money. Personal ownership of money may thoroughly transform our modern world. We will go from a centralized economy manipulated by the few to one based on sound money principles, protecting the present, preserving the past and preparing for the future.