Hyperbitcoinization simply refers to the Bitcoin blockchain taking over as the global mode of exchange. A few things need to happen, however, for this Cryptocurrency to experience virality.
Although human action will be required to make it happen, Hyperbitcoinization is very likely to occur. Possibly more likely than many people expect. Additionally, the current state of the global economy might be a leading factor.
Recent Shutdown activities by many governments due to the global coronavirus pandemic have led to economic stagnation across the globe.
People got terrified of the pneumonia-like disease, so holding paper cash became a challenge. This fear resulted in governments encouraging their Citizens to use payments with less contact.
Factors Necessary For Hyperbitcoinization to occur
Gaining investors trusts
When people gain trust in Bitcoin, it results in them losing confidence in the government’s traditional financial system and even the general world market.
People lose trust with fiat when their emotions run wild after a crash in stock markets or the loss of their jobs. As a result, they look for other ways to earn money, with many venturing into the digital market.
Before the world pandemic, the globe was experiencing protests and civil unrest related to corruption in governments.
Usable Options to Fiat currencies
There are many alternatives that people can use to replace fiat, for example, Bitcoin. BTC is fast and does not require any permission. In addition, this Cryptocurrency has a low transaction fee and, most importantly, is a decentralized network.
Many Countries are launching Central Bank Digital Currencies, and they will impact the Crypto market without a doubt.
If governments are researching and developing CDBCs, it means that everyone is trying to get away from fiat. China, for instance, announced that they are in the developing stages of their Digital Yuan. So, fiat is and will get replaced.
Free and voluntary transactions are a significant plus for any marketer trying to attract investors. Even the dollar or the yen needs this to achieve success. So if Hyperbitcoinization should happen, they should have the attractive feature of Open Markets.
In addition, Bitcoin has several advantages, including decentralization, high leverage, low trading cost, lack of global boundaries, security, and low deposit amount.
However, it has some disadvantages such as Different exchange rates, the risks of the US dollar rate, Volatility, and leverage-related risks.
Final Thoughts on Hyperbitcoinization
Many people know the value of Bitcoin and how to utilize it. However, regulations put in place by the government limit them. However, a majority of people don’t have any idea of Cryptocurrency; hence can’t take any action.
For Hyperbitcoinization to take effect, it has to go viral, meaning sharing more information about Bitcoin.
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