Henry J on Nostr: Just uploaded some old Bitcoin blog posts I had laying around to my website. I’m of ...
Just uploaded some old Bitcoin blog posts I had laying around to my website. I’m of the opinion that hyperbitcoinization will cause fiat hyperinflation, rather than fiat hyperinflation causing hyperbitcoinization. Here’s some quotes from my blog post detailing how exactly this might play out:
“Bitcoin will go to infinity against the dollar when you can spend Bitcoin practically everywhere, or to purchase pretty much anything you might need, without selling it for dollars first. This will happen when merchants believe Bitcoin is a form of money, or at least a store of value, and accept Bitcoin directly as payment. This would create 0 Bitcoin outflows and only inflows, quickly driving the price of Bitcoin to infinity against the dollar.”
“One event that could trigger such a mindset shift is Bitcoin reaching market-cap parity with physical gold. That could trigger a sudden narrative shift and realization that Bitcoin is the real deal. Suddenly, a wave of merchants adopting Bitcoin as payment takes hold, and the hyperbitcoinization process begins in earnest.”
“Once merchant adoption happens globally, the price of Bitcoin will SKYROCKET. Outflows will completely cease. Suddenly, overnight, Bitcoin will scream higher in price.”
“Up to this point, even as Bitcoin mooned, prices remained denominated in dollars and stayed stable. But as any and all people who own Bitcoin suddenly become millionaires, billionaires, and trillionaires, the wealth effect will become too powerful, and inflation will begin to kick in.”
“As every such common man and woman becomes Bitcoin-rich (think every single person is a millionaire), prices will begin to climb higher in dollars. Real estate will go up. Rents will go up. Prices of services will go up. Wages will go up.”
“…inflation will not only be limited to the earliest Bitcoin economies. As Bitcoin literally goes to infinity in fiat terms, many economies that adopted Bitcoin will experience wealth effects and begin to see inflation. Fiat wealth will spill over everywhere due to the Bitcoin bubble effect.”
Full blog post here:
https://sovrynn.github.io/blog/0041/index.html
“Bitcoin will go to infinity against the dollar when you can spend Bitcoin practically everywhere, or to purchase pretty much anything you might need, without selling it for dollars first. This will happen when merchants believe Bitcoin is a form of money, or at least a store of value, and accept Bitcoin directly as payment. This would create 0 Bitcoin outflows and only inflows, quickly driving the price of Bitcoin to infinity against the dollar.”
“One event that could trigger such a mindset shift is Bitcoin reaching market-cap parity with physical gold. That could trigger a sudden narrative shift and realization that Bitcoin is the real deal. Suddenly, a wave of merchants adopting Bitcoin as payment takes hold, and the hyperbitcoinization process begins in earnest.”
“Once merchant adoption happens globally, the price of Bitcoin will SKYROCKET. Outflows will completely cease. Suddenly, overnight, Bitcoin will scream higher in price.”
“Up to this point, even as Bitcoin mooned, prices remained denominated in dollars and stayed stable. But as any and all people who own Bitcoin suddenly become millionaires, billionaires, and trillionaires, the wealth effect will become too powerful, and inflation will begin to kick in.”
“As every such common man and woman becomes Bitcoin-rich (think every single person is a millionaire), prices will begin to climb higher in dollars. Real estate will go up. Rents will go up. Prices of services will go up. Wages will go up.”
“…inflation will not only be limited to the earliest Bitcoin economies. As Bitcoin literally goes to infinity in fiat terms, many economies that adopted Bitcoin will experience wealth effects and begin to see inflation. Fiat wealth will spill over everywhere due to the Bitcoin bubble effect.”
Full blog post here:
https://sovrynn.github.io/blog/0041/index.html