Will "hyperbitcoinization" become a reality?

[Abiky]

For those unaware, "hyperbitcoinization" means the adoption of Bitcoin at a large scale worldwide making it the standard (global) unit of account. In a "hyperbitcoinized" world, you would pay for anything using Bitcoin instead of Fiat. In the past years, Bitcoin's mainstream adoption went up at an accelerated rate. Bitcoin's ever-rising popularity made El Salvador the first country to adopt it as legal tender. As inflation increases at alarming levels, people will seek out for a solution to the problem. And what better way than ditching Fiat in favor of Bitcoin?

What are your thoughts? Do you think we're close to "hyperbitcoinization"? If not, why? What will be of the world without centralized Fiat currencies? Your input will be greatly appreciated. Thank you.

[jackg]

I don't think bitcoin can or will replace fiat but the two coexisting might work (at least if a crypto has better throughput - can take a enough transactions a minute).

Primarily using bitcoin might be problematic as current inflation encourages spending (including investments) with a deflationary currency, while enough profits will be made to return more to shareholders than a deflationary currency would offset, investors would likely be nervous/confused about them being able to do that.

[Poker Player]

What are your thoughts? Do you think we're close to "hyperbitcoinization"? If not, why? What will be of the world without centralized Fiat currencies? Your input will be greatly appreciated. Thank you.

In view of the foreseeable EU legislation that I commented on in another thread, I am pessimistic about it.

As I see it now, Bitcoin is going to remain just another financial asset, like a stock or an investment fund, and unless the legislation changes, it will not be used massively for day-to-day payments, due to the problem that it entails. of having to declare and pay, if applicable, capital gains every time you buy a coffee.

I hope that more countries join El Salvador, which will surely be poor countries, and that more and more politicians from countries like the US, UK, EU, etc. are in favor of implementing legislation favorable to Bitcoin to be able to use it on a day-to-day basis. But today I look to the future and I don't see it.

[avikz]

For those unaware, "hyperbitcoinization" means the adoption of Bitcoin at a large scale worldwide making it the standard (global) unit of account. In a "hyperbitcoinized" world, you would pay for anything using Bitcoin instead of Fiat. In the past years, Bitcoin's mainstream adoption went up at an accelerated rate. Bitcoin's ever-rising popularity made El Salvador the first country to adopt it as legal tender. As inflation increases at alarming levels, people will seek out for a solution to the problem. And what better way than ditching Fiat in favor of Bitcoin?

What are your thoughts? Do you think we're close to "hyperbitcoinization"? If not, why? What will be of the world without centralized Fiat currencies? Your input will be greatly appreciated. Thank you.

Close to hyperbitcoinization?? LOL! We haven't yet started and I don't see it happening in our lifetime unless and until we see a nuke war happening amongst the Nuke powered countries. Bitcoin's adoption rate is definitely increasing but as an investment and not as a currency system. Whatever is happening in Russia and Ukraine, is actually an exception. It can't become a practice for the other countries unless they face extinction through a nuke war.

A lot of people within this community, prefers bitcoin as an investment because we have seen its potential. But when it comes to use as a currency, a very very minor insignificant fraction of people are actually able to do it.

[pooya87]

For those unaware, "hyperbitcoinization" means the adoption of Bitcoin at a large scale worldwide making it the standard (global) unit of account.

Just call it mass adoption so that there is no need to also give definition

In a "hyperbitcoinized" world, you would pay for anything using Bitcoin instead of Fiat.

Why "instead" of fiat and not "alongside" fiat? I don't think bitcoin will ever replace fiat, it also wasn't meant to replace it either. In mass adoption you will see almost every place accepting bitcoin payments just as they accept fiat payments, credit cards, etc.

And what better way than ditching Fiat in favor of Bitcoin?

I don't think it is possible to ditch fiat in the foreseeable future. We live in a centralized world and worst of all people are used to certain things that won't change that easily.
Although I agree that with the increasing inflation people will have another incentive to convert their fiat (part of it at least) to bitcoin to have a chance of surviving the increasing prices.

[franky1]

bitcoin already is a global currency. .. thank you internet.

but bitcoin wont become:
a world reserve that national governments rely on
a "one world currency" where everyone uses only bitcoin and not other native/crypto currencies

bitcoin does not need to become a 'one world currency' nor replace government fiats.
bitcoins purpose is to be an open secondary choice to hedge against fiat

EG
keep the fiat so people can make their debt and write-it-off in bankruptcy, while hoarding their wealth in private on bitcoin.

we may see 2 'world reserve' crypto-currencies, based in 2 economic zones
the BIS(asias version of world bank) project called the m-bridge. which is a asia based system that connects to europe and the slavic countries. offering bridges between multiple countries CBDC

and the world bank(americans world bank) project called the hyperledger. which is american based system that connect to europe and other continents offering access between multiple countries CBDC

in short. there seems to be becoming 2 'world system' which were formally dubbed 'amero' and 'brics' but now being made into things like 'bridges/hyperledgers to connect national CBDC like the e-cny

CBDC's are basically stablecoins without the blockchain, using smart contracts instead. where eventually they will choose which CBDC to then base as the medium of exchange reserve to measure other CBDC against

[Flexystar]

I love bitcoin at extreme levels but I dont think it means I want to see "hyperbitcoinization". I would love to but only when the bitcoin's world is completely flourished with all new techs. Today I am not even able to talk about it to the old generation, neither its understandable at international levels. With the crypto being adopted everywhere, we might see some sparks in our thoughts but its not main stream adoption yet.

For example, even if whole Europe starts to trade in bitcoin, then its not a main stream adoption, there are still USA, Asia, Africa and rest of the world.

So we can't get excited with the current rate of adoptions. Bitcoin is in the news, great but it's not on everyone's phone yet!

[SpenserReed]

I don't think that Bitcoin will ever replace fiat currency mainly because of its volatility. It's difficult to imagine paying for something in Bitcoin knowing that its value can double in short period of time. Vice versa how to accept Bitcoin knowing that its value can significantly decrease in short period of time? So, Bitcoin won't replace fiat as a payment but it is replacing it as an investment. Also, I don't think that governments of big countries like US and China will ever support Bitcoin or any other crypto coz they tend to control their finances. They rather issue their digital currencies which they will use as fiat replacement.

[aprilnot]

What are your thoughts? Do you think we're close to "hyperbitcoinization"?

still a long way from achieving that. indeed mainstream adoption is happening right now. many countries are starting to see bitcoin as something profitable. but all this is just a discussion, few actually try to adopt it. and on average those countries are developing countries. while developed countries still refuse, arguing that they think bitcoin is one of the annoying things. they are trying to limit bitcoin to keep their currency influential.

What will be of the world without centralized Fiat currencies?

perhaps a decentralized economy will materialize. there will be no more centralized country as it is today where the influence of the US on the global economy is so great.

[PrivacyG]

Do you think we're close to "hyperbitcoinization"? If not, why? What will be of the world without centralized Fiat currencies? Your input will be greatly appreciated. Thank you.

We are closer to the artificial centralization of Bitcoin than we are to hyperbitcoinization.  This latter term will never be a thing unless the entire world's system is overturned.  They are trying to slowly turn Bitcoin into what they want to achieve with CBDC's.  Know everything, control everything.

There is a huge will for governments to fight for their power and they are willing to fight Bitcoin.  If you see what EU is trying to do with Cryptocurrencies, how the average human uses it and you use a bit of common sense you would get why this is just an utopian thought and nothing more.

-
Regards,
PrivacyG

[TheUltraElite]

I still think we are in a "hypobitcoinization" state, it that makes any sense.

Truely the news of some countries accepting and allowing bitcoin legally made so much buzz that other countries are now watching them like researchers on guinea pigs in a closed cage. It will be like this for several years now until more countries start to end the fear related to cryptocurrencies and the general public takes it more positively.

In the meantime, fiat will prevail and even in future both with co-exist so that term is probably never going to be real unless the economic system changes a lot.

[Wexnident]

What are your thoughts? Do you think we're close to "hyperbitcoinization"? If not, why? What will be of the world without centralized Fiat currencies? Your input will be greatly appreciated. Thank you.

It's gonna happen yes, but we are absolutely nowhere near close it to happening. And to note, I don't think it's going to replace fiat, more like coexistence of sorts where people are able to pay with both at their own convenience. As for why we're not close to it, you can literally look around the world, at the rate of adoption, and what's happening with Bitcoin as a mode of payment. Almost only big companies/stores are the ones accepting it as payment, we can't exactly use it to pay for a large majority of stuff afaik, though that doesn't mean there's nothing.

[famososMuertos]

For those unaware, "hyperbitcoinization" means the adoption of Bitcoin at a large scale worldwide making it the standard (global) unit of account. In a "hyperbitcoinized" world, you would pay for anything using Bitcoin instead of Fiat. In the past years, Bitcoin's mainstream adoption went up at an accelerated rate. Bitcoin's ever-rising popularity made El Salvador the first country to adopt it as legal tender. As inflation increases at alarming levels, people will seek out for a solution to the problem. And what better way than ditching Fiat in favor of Bitcoin?

What are your thoughts? Do you think we're close to "hyperbitcoinization"? If not, why? What will be of the world without centralized Fiat currencies? Your input will be greatly appreciated. Thank you.

There is no way to know if this can even happen, although the experts a priori radically say no, that is to say 100% no and such a thing is not true, although for the particular common sense of some it is.

But the reality is that probability gives way to yes, the issue is to what extent are we supposed to get there quantitatively, even for the dollar it's not 100%.

So in particular I always think about the qualitative fact of bitcoin, it is better and that is the great value of adoption that we need.

[hd49728]

It will happen. We only don't know when. Bitcoin will be like other things which can not be restricted completely by governments. Sexual industry, gambling industry, addictive drug industry etc.

Furthermore, Bitcoin has huge potential by its technology, its total supply, and its decentralization. Regulations will be approved and go into enforcement by governments but they will not be able to kill Bitcoin. The longer the time goes, Bitcoin will reach to more people, its network will become bigger and healthier. If governments can not kill Bitcoin now, they won't be able to kill it next 10, 20 or 50 years.

[kryptqnick]

I don't think the world is ready to abandon fiat just yet. Fiat has been around for a long time, and there's a lot of infrastructure that was built for it. Also, while inflation isn't great, it's still largely acceptable if we're talking about strong and globally popular fiat currencies. Bitcoin, meanwhile, has a fairly high volatility, not to mention how high transaction fees get when the network gets overloaded with them. So I think that between losing 8% per year and sometimes losing 20% in a month while at other times winning 10% within a couple of weeks, most would choose losing 8%. Because there's the state and institutions to blame, because 8% per year isn't really too noticeable and because having such high volatility is not for everyone and can lead to big problems, especially for people who heavily rely on salaries for life (they can't afford a few months with 20% less, for example, because then they might not be able to pay the rent, buy enough food etc.).

[Fortify]

For those unaware, "hyperbitcoinization" means the adoption of Bitcoin at a large scale worldwide making it the standard (global) unit of account. In a "hyperbitcoinized" world, you would pay for anything using Bitcoin instead of Fiat. In the past years, Bitcoin's mainstream adoption went up at an accelerated rate. Bitcoin's ever-rising popularity made El Salvador the first country to adopt it as legal tender. As inflation increases at alarming levels, people will seek out for a solution to the problem. And what better way than ditching Fiat in favor of Bitcoin?

What are your thoughts? Do you think we're close to "hyperbitcoinization"? If not, why? What will be of the world without centralized Fiat currencies? Your input will be greatly appreciated. Thank you.

No chance. Bitcoin in its current form is simple nowhere near efficient enough to cope with the sheer volume of transactions and it is power hungry compared to existing payment networks. It has also become more of a commodity, where millionaires and billionaires have bought up huge chunks simply to sit on it forever as another asset, taking vast amounts of what would otherwise be functional traded currency out of circulation. Bitcoin laid the groundwork for a very powerful idea, a decentralized and transparent payment system, but even the internet was not perfect in the first few decades of existence - many improved versions came out making  the original obsolete.

[mindrust]

I don't see it happening. It is possible if the majority of the population was using bitcoin for their purchases but they are not doing that. They use their credit cards instead. Stocks and other investments also still dominating finance.Blockchain infrastructure isn't making things easier neither. It is safe yes but it comes with a price. It is expensive and slow...

[Abiky]

I don't see it happening. It is possible if the majority of the population was using bitcoin for their purchases but they are not doing that. They use their credit cards instead. Stocks and other investments also still dominating finance.Blockchain infrastructure isn't making things easier neither. It is safe yes but it comes with a price. It is expensive and slow...

That's because most people only see Bitcoin as an investment rather than a currency for day-to-day purchases. But I believe that will change in the future, as governments embrace Bitcoin in every way. El Salvador was the first country to adopt Bitcoin as legal tender, with many more to follow suit (hopefully) as the pioneer cryptocurrency becomes more popular worldwide. I wouldn't say Bitcoin is expensive and slow since we already have a scaling solution dubbed "The Lightning Network". For mainstream payments, the LN works like a charm. With instant transactions and dirt-cheap fees, Bitcoin can reach the masses like never before.

What's really stopping "hyperbitcoinization" from become a reality is the Fiat standard. Since most of the things are valued in Fiat, Bitcoin's price fluctuates like crazy on the market. Only a collapse in the current monetary system powered by central banks and governments alike will push us forward towards the complete decentralization of the global economy. The chances of this happening are very slim, but anything's possible. Who knows what the future of Bitcoin will look like? Just my thoughts

[mindrust]

LN is fine. I am aware of that. However, it is just not the same thing. It is not as practical as bitcoin. With bitcoin you can just have a private key written on a piece of paper and forget about everything else. No need to run nodes, no need to depend on any third party.

LN feels like a different network, a different coin. Bitcoin is adoption is something but LN adoption is a whole something else. Impossible to achieve? No. Nothing is impossible. But I don't see it happening any time soon neither.

[AakZaki]

Bitcoin is still an optional digital asset that will coexist with FIAT, it is undeniable that bitcoin still has a big risk for now. Different regulations in each country prevent bitcoin from being fully adopted. El Salvador is indeed an example of a country that actually does full adoption of bitcoin. “Hyperbitcoinization” still seems to be a buzzword and it hasn't gotten to the level that actually made bitcoin to the top.