Debt-Ridden Economies Will Be The Prime Motivator For Hyperbitcoinization


Debt-Ridden Economies Will Be The Prime Motivator For Hyperbitcoinization

Massive debt is a common factor in huge economies like the USA or failed economic states like Venezuela. Both these economies, in theory, are a breeding ground for Hyperbitcoinization.

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.

Mass adoption will happen when people run away from fiat and find bitcoin if it is ready. Possibly a cascade of sovereign debt crises. If that's the case, then it makes more sense to value bitcoin in light of current M1 money supply (cash, coins, bank accounts), not gold. The S-curve flattens at the top at tens of trillions of today's USD in total capitalization (reasonable part of the current money supply, but not necessarily all of it), giving 1 BTC value of a few million of today's USD. This makes sense if a single Satoshi would become equal to today's cent/pence/yen.

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.

Although, the infrastructure should be ready for hyperbitcoinization. Hopefully, not earlier than L2 takes over or the first bitcoinization attempt will fail miserably and that would preempt a second attempt for a long time – or even give a different “brand” advantage. Pretty much the single most important thing that is needed in Bitcoin right now is to open up for mass consumption. For something to happen a realistic alternative has to exist.

https://bitcoinexchangeguide.com/bitcoin-btc-ethereum-eth-xrp-ripple-and-bch-price-analysis-watch-feb-11th/

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