Bitcoin Domination or Hyperbitcoinization?
Hyperbitcoinization is a state in which Bitcoin is expected to become the world’s dominant form of money. The fact that the digital currency is socially wired should work to its advantage when it comes to exponential adoption.
Cryptocurrencies enthusiasts expect Bitcoin to displace legacy paper (fiat) currencies and become the only method of value exchange.
With Hyperbitcoinization, Bitcoin should change people’s relationship with money. The fact that people will own their money and be in total control of its value is seen as one of the attributes that will make most people shun fiat currencies.
Central Bank machinations should end as more people join the cryptocurrency bandwagon. Krawisz expects bitcoin to reframe citizen’s roles in a borderless, global economy. The virtual currency should become the world’s first universal currency in part because of voluntary social drivers and its inherent social drivers.
According to Daniel Krawisz, no currency has what it takes to stand in the way of Bitcoin world dominion given the expected mass adoption. Any currency that tries to stand in the way should lose value as Bitcoin supplants it.
Currently, Bitcoin is trading at 6,646.3149, -61.54, or -0.92%, as of 4:48a BST, the market is open
The cost of rejecting Bitcoin should exceed the cost of adopting it as more people start to use the cryptocurrency. The digital currency is expected to begin assuming money’s traditional roles helped by widespread adoption and acceptance.
Institutional and government support should go a long way in accelerating adoption of the cryptocurrency in the mainstream sector, a feat expected to strengthen its value.
Something like 20% of Bitcoin total supply will be missing or lost in the future, which means there will only be about 16.8-M coins in circulation.
Dividing the global value of money 1.8-Q with the total 16.8-M coins, incomes $107,142,857 which when rounded brings about the expected Bitcoin value at $100-M.
Bitcoin still faces an uphill task to replace legacy currencies.
Bitcoin has experienced a string of recovery highs ever since it touched record highs of nearly $20,000 in late December 2017. With the price now hanging around the $6,000 mark, many people are still skeptical of its ability to find its way back to its record highs.
Regulatory pressure poses the biggest threat to Bitcoin becoming a mainstream currency.
A number of countries have already banned the digital currencies even as other pass stringent regulations designed to limit its use as a legal tender and some say no regulation is best.
But, that has not stopped people from coming up with ways to bypass the regulations all in the effort of using the virtual currency.
Bitcoin is no longer considered a fad, but a cryptocurrency with long term potential.
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