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Author: Admin | 2025-04-27
Hyperbitcoinization is the belief that eventually all goods and services will be priced in bitcoin instead of dollars. If you identify as a Bitcoin maximalist, you might have already accepted this as a given. But what does this process actually look like over time? What are key milestones that we can point to that would indicate hyperbitcoinization is taking place? In this post, I explore current Bitcoin financial products, geopolitical reasons governments will adopt bitcoin, why central banks will adopt bitcoin and more. Merging Bitcoin with Traditional FinanceAs adoption continues, more companies will offer Bitcoin financial products and further merge Bitcoin into the traditional finance world. Unchained is a company at the frontier of this world whose financial products include USD loans collateralized with bitcoin, bitcoin inheritance and taxed advantaged retirement accounts. Unchained is also helping people use these products in a secure self-sovereign manner: incentivizing key ownership, collaborative multisig custody and building out the “network of keys.” Meanwhile is a life insurance company denominating premiums and payouts in bitcoin backed by Sam Altman that offers insight into the future of bitcoin denomination. While bitcoin’s value is volatile in the short term, we can safely assume that it will beat inflation over long time frames. How much purchasing power do you think $300k will have in the future compared to 5 bitcoin? Which would you prefer your loved ones receive in the event of your untimely passing?I expect financial products that denominate payouts in BTC will be long-dated at first. As Bitcoin adoption continues, liquidity will increase and price volatility will decrease. This will make financial institutions more comfortable creating products that payout in bitcoin over shorter time frames. This reminds me of how Austrian economists think of hard money versus soft money when it comes to saving and spending. Throughout history, the harder money, gold, was hoarded and used for larger payments, while silver and other softer money were used to settle everyday payments. Unlocking Efficiencies in Existing Payment Rails Bitcoin will increasingly be integrated into payment infrastructure. While there are untold amounts of amazing work in Bitcoin infrastructure
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