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Bitcoin bulls give 10-year estimate for hyperbitcoinization to hit

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Hyperbitcoinization is a theoretical situation in which Bitcoin will replace traditional currencies and become the dominant, if not the only, medium of value transmission.

Kraken CEO Dan Held reckons there are ten years left before hyperbitcoinization. This was also stated by the participants of the Bitcoin 2021 conference in Miami. Thus, in the long term, Bitcoin can become a unit of account by 2031.

Ammous expressed a more conservative view, and gave hyperbitcoinization 15 to 16 years.

What is hyperbitcoinization?

Daniel Kravish writes in his article for the Satoshi Nakamoto Institute: “Hyperbitcoinization is a voluntary transition from a worse currency to a better one. Its distribution carried out through a series of separate actions of entrepreneurs, and not through a single monopolist dominating the system”.

He calls hyperbitcoinization a form of demonetization. This is exactly what it is. Because with hyperbitcoinization, Bitcoin is so superior to all other currencies that their value begins to tend to zero.

This transformational event also referred to as the “tipping point” at which the rapid mass adoption of Bitcoin fueled by the economic crisis, causing the need for monetary stability and liquidity. During a catastrophic hyperinflation of national currencies, people decide to use Bitcoin to carry out personal and business transactions.

Bitcoin maximalists call hyperbitcoinization the ultimate goal. Bitcoin “wins” while all other currencies go out of circulation. Experts warn that a similar scenario could result in a full-scale currency war. Self-interest will oppose fundamental changes in the way the monetary system works. The benefits enjoyed by the establishment will be greatly reduced or eliminated by hyperbitcoinization.

However, this is just an opinion, and a fiat takeover by Bitcoin may not be as inconceivable and disastrous.

Bitcoin is spreading at an unprecedented rate

Bitcoin has proven itself to be a socially connected form of money for a socially connected society. No organized group promotes its benefits or has control over it. Users own it and promote it. This allows Bitcoin to spread at an unprecedented rate. Bitcoin is an innovation with few barriers to large-scale distribution. Since there is no central authority that could underestimate its value, this value determined by the people themselves. No border can stop it from spreading because it decentralized. Bitcoin is becoming more secure as more people start using it.

Since Bitcoin combines a currency with reliable monetary qualities and innovative technology, it is able to become the dominant form of money, by several orders of magnitude superior to its competitors.

Satoshi Nakamoto condemned the Bitcoin ecosystem to growth by limiting the amount of emission and creating a secure decentralized network, all participants of which interested in the well-being of the cryptocurrency.

Movements towards the state of hyperbitcoinization

The social acceptance, resulting demand and technology of Bitcoin is driving it to grow at a rate driven by the network effect. From a fundamental point of view, the advantages of Bitcoin in the context of monetary properties give it the opportunity to become the world’s first universal digital currency: lack of borders; lack of centralized authority; lack of inflationary policy.

However, to replace fiat, Bitcoin must at least not be inferior to it in value, perform all the functions of the traditional monetary system and meet various criteria for money. Hyperbitcoinization requires total domination at every point in the financial world. Bitcoin must be suitable for buying coffee and ensuring the functioning of the global economy.

Hyperbitcoinization requires Bitcoin to become the only form of money in the world.

Bitcoin’s current price is only a fraction of what it will be if hyperbitcoinization turns out to be a reality.

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