“Hyperbitcoinization”-a nearly apocalyptic expression that induces the end-of-day-fiat collapse and Bitcoin’s parabolic increase in global reserve status is increasingly discuted in more serious circles.
For Hardcore Bitcoin Maksimalists, it has long been the ultimate scenario: an economic utopia in which individuals, institutions and even nations are all on an only Bitcoin system as the Fiat-based economy collapses.
Although we are not there yet, the recent events may imply that something brewing.
Bitcoin trades with record highs over $ 119,000. The Bitcoin market sheath is near that of the tech giants. The US dollar continues its slow bleeding in real purchasing power. Larger institutions allocate capital to BTC with the same risk -adjusted lens, they apply for traditional assets. If hyperbitcoinization once sounded like ideological fiction, it is now likely to approach the reality of the early stage.
“In previous BTC bull markets, hyperbitcoinization thesis would have been limited to crypto enthusiasts. Recently, hyperbitcoinization-attractive conversations have become much more tasty to the wider public,” Frnt Capital said in an email note.
From trenches to the front line
Just a few years ago, no one thought Backrock could create a stock exchange stock for the masses to buy billions in Bitcoin.
Today is Ishares Bitcoin Trust (Ibit) is a Juggernaut with 706,008 Bitcoin under his belt, worth $ 82 billion, according to BitCintreasuries.net -Data.
Large companies collect money to buy Bitcoin for their balance. Political leaders, including a pro-crypto US president, are flowing the idea of national Bitcoin reserves (whether it will come to execution is still ready for debate).
Even an American housing regulator is considering whether Crypto Holdings could be considered for mortgage applications – a potential signal that digital assets are becoming part of the central economic infrastructure, or at least those currently in power will see it happening.
And of course, Wall Street has already claimed Bitcoin with “trade treatment” of the digital assets.
Ownership change
The diagram below makes an interesting observation about a potential “hyperbitcoinization” that is already well underway.
From 2014 to at least 2020, Bitcoin has been held by mostly individuals. But quickly to today is a massive number of companies, funds and even governments as opposed to individual crypto enthusiasts holders of Bitcoin, while prices continue to gather to new heights.
This shift in wallet distribution suggests that hyperbitcoinization, although not fully realized, is progressing from an ideological dissertation to a potential observable market behavior.
In a market that is increasingly driven by narrative momentum and liquidity rotation, hyperbitcoinization may not be just a theme – it can be trade.
“This may be conceivable as the hyperbitcoinization thesis has been validated in practice and receives further mainstream attention, more BTC investors will be motivated to HODL. This applies not only to individuals, but to both institutions and nations,” said Frnt.
