Hyperbitcoinization is a Real Thing and Banks Could Fuel the Crypto-Based Financial System
Banking policies and the current banking system could help Bitcoin reach a larger number of individuals around the world. Visa has recently announced a dramatic increase in fees for merchant banks. Although this is not a measure that has been imposed directly to consumers, it will affect them indirectly.
Merchants such as JP Morgan and Citibank will have to pay larger costs to process transactions. Once the fee increase occurs banks will have to decide whether to absorb the cost or just increase the price consumers will have to pay.
The International Monetary Fund (IMF) is currently trying to implement new policies to reduce interest rates below zero. That means that individuals would be charged to store their funds in the bank. In this way, it is possible to bring more liquidity to the market.
One of the ways that the IMF is currently planning to create dua currencies that will reduce overall cash in the marketplace. That means that electronic funds controlled by central banks can be controlled using interest rate changes. By moving ash out of the system, central banks can control the amount of interest charged without the freedom that cash provides to users.
Due to these situations that increase consumers’ costs, Bitcoin (BTC) could find its place to grow and be adopted by several users. Although Bitcoin charges fees for transactions, they are mathematically determined, rather than arbitrary. It is possible to hold coins without being charged for it.
According to Samson Mow, the CSO of Blockstream, the banks will be helping hyperbitcoinization to happen.
— Samson Mow (@Excellion) February 17, 2019
Bitcoin holders have the possibility to now wait and see what the market will do in the future. Clearly, Bitcoin supporters will see that they will have on their hands a very powerful asset that will be changing the world.
Indeed, it will be possible for Bitcoin users to find a safe haven and avoid policies implemented by governments and dominant financial companies around the world.
Currently, each Bitcoin is being traded around $3,974 and it has a market capitalization of $69.73 billion.