The term hyperbitcoinization is used to describe a utopian (theoretical) state of the world economy where Bitcoin is accepted as a legal tender worldwide while all fiat currencies have become devalued and replaced by digital coin.
Simply put, hyperbitcoinization is the demonetization of a national fiat currency in favor of Bitcoin. Believers think people will abandon their local fiat currencies because of mismanagement by the central banks, the most likely result of poor stewardship being hyperinflation. People will be forced to demonetize their currency, that is, revoke its status as a legal tender. The most extreme belief is that fiat money will completely die, and all the wealth in the world will transition to Bitcoin.
To put it another way, hyperbitcoinization is a Bitcoin-induced currency demonetization. It would happen to any country that mismanages its national currency. In the event of this happening, a national currency will quickly lose value as the new Bitcoin currency occupies its place.
The term was coined by Daniel Krawisz, who used it in a paper published in 2014. His creation has been gaining traction ever since and is widely used by Bitcoin maximalists.
Hyperbitcoinization is a voluntary transition of the world economy towards using Bitcoin as a form of money. The cryptocurrency has the potential to be adopted anywhere in the world. The basic premise of hyperbitcoinization is that it will happen naturally (organically), a common presumption being that as global acceptance increases, the cost of rejecting Bitcoin will exceed the cost of adopting it. Over time, Bitcoin will gain traction and secure the support of governments, thus becoming the backbone of a new global economy. At the point of hyperbitcoinization, the price of the cryptocurrency is projected to be $100 million per coin, which could happen within 20 years. Bitcoin price bubbles will continue to happen until a plateau is reached and the value stabilizes.
The process of demonetization usually involves withdrawing from circulation and replacing a country’s currency notes and coins with new ones. However, a country can sometimes completely replace its current currency with a new one. The reasons for demonetizing include fighting inflation, crime (counterfeiting, tax evasion, etc.), and encouraging trade.
A famous example is the 1873 Coinage Act in the United States through which silver was demonetized as the legal tender of the country in favor of the gold standard. The withdrawal of silver coins from the economy resulted in a five-year economic depression because of a money supply contraction. In 1878, the Bland-Allison Act remonetized silver as a legal tender in the United States.
Another famous instance of demonetization was the introduction of the euro currency, with physical euro coins and notes replacing the old German mark, the French franc, and the Italian lira. For a while, those currencies were convertible at a fixed rate to ensure a smooth transition. In 2015, the hyperinflated Zimbabwean dollar was demonetized in favor of the US dollar, the Botswana pula, and the South African rand, which is more stable currencies.
Top 5 Ways to Earn Bitcoin (BTC) in 2021
Earning Bitcoin (BTC) or other assets is possible in 2021, though caution is advised to avoid scams.
Earning Bitcoin (BTC) was easy in the early days – but it is still possible to earn Bitcoin in 2021. Starting on your crypto journey, it’s important to pick reputable sources and avoid scams as you work to collect satoshis. Here are 5 easy ways to earn Bitcoin today.
The MoonBitcoin faucet is probably one of the most popular ways to gain small amounts of Bitcoin (BTC). Faucets are, generally speaking, a slow way to gain Satoshis. Faucets usually require the solving of captchas, and regular logins mean special bonuses are added. The micro wallet for the faucet also allows exchanges between coins, so even earning altcoins may translate into more Satoshis.
Earn BTC for Shopping
The Lolli platform offers multiple “cashback” (or in this case, Satoshi-back) programs. Lolli has secured multiple platforms as partners, meaning many types of purchases, from fashion to food, will be sending back BTC to your wallet. Lolli partners with 500 global brands, and boasts of making it safe and simple for anyone to own BTC.
Similar to shopping kickbacks, travel can also secure BTC returns. Just use the right platform, in this case, TravelByBit. The catch here is that you already need to own some crypto, either BTC or Litecoin (LTC), or Binance Coin (BNB).
Lock Your Email
The Earn.com service allows you to charge crypto coins for receiving emails. Registering means you can spam-proof your email, but also complete short tasks or open sponsored content for a chance at increasing your balance.
Complete Short Tasks
The Earn Coins service is just one of the many that payout crypto coins for completing short tasks, such as viewing ads or videos. If the service offers payout in altcoins, it is also possible to exchange them for BTC or another asset.
Of course, there are multiple other offers to gain crypto coins, such as gaming for native coin rewards, risking with crypto-collectibles, or using the Brave browser for crypto rewards. Cloud mining is also touted as a way to gain coins, although margins are paper-thin, and the service may prove unprofitable if market prices turn the tide. But those new ways of earning BTC show that BTC adoption is still ongoing, with plenty of new opportunities.
Hyperinflation and hyperbitcoinization are forms of demonetization, the main difference being that a currency hyperinflates with little to no competition from other currencies. In the case of Bitcoin, it represents competition to all currencies because it can easily cross borders. So, hyperbitcoinization is far more dangerous for national currencies as a form of demonetization than hyperinflation.