“Hyperbitcoinization” – an almost apocalyptic term evoking the collapse of the end of the day fiat and the parabolic rise of Bitcoin to the status of global reserve – is increasingly discussed in more serious circles.
For Bitcoin’s hardcore maximalists, he has long been the ultimate scenario: a financial utopia where individuals, institutions and even nations are all all on a Bitcoin system only while the fiat-based economy collapses.
Although we are not there yet, recent events could suggest that something is being prepared.
Bitcoin is negotiated at record heights greater than $ 119,000. Bitcoin market capitalization is close to that of technology giants. The US dollar continues its slow bleeding in real purchasing power. Large institutions allocate BTC capital with the same lens adjusted to the risk that they apply to traditional assets. If hyperbitcoization once resembled an ideological fiction, it probably approaches reality at an early stage.
“In the previous markets of BTC Bull, the hyperbitcoization thesis would have been limited to crypto enthusiasts. More recently, conversations adjacent to hyperbitcoization have become much more acceptable to the wider public,” said Capital in a note sent by email.
Trenches at the front line
Barely a few years ago, no one thought that Blackrock would create a negotiated stock market for the masses to buy billions of bitcoins.
Today, the Ishares Bitcoin Trust (Ibit) is a mastodon with 706,008 bitcoin to its credit, worth $ 82 billion, according to Bitcointreas.net data.
Large companies collect funds to buy bitcoin for their balance sheets. Political leaders, including an American President Pro-Crypto, float the idea of the national reserves of Bitcoin (if that will materialize is always to be debated).
Even an American housing regulator examines if Crypto Holdings could be taken into account for mortgage requests – a potential signal according to which digital assets are part of the basic financial infrastructure, or at least that those who currently have power would like this to happen.
And of course, Wall Street has already claimed Bitcoin with the “tradition” of digital assets.
The quarter of the property
The graph below makes an interesting observation on potential “hyperbocinization” which can already be well in progress.
From 2014 to at least 2020, Bitcoin was owned by most individuals. But in front to today, a massive number of companies, funds and even governments, as opposed to individual cryptography lovers, are Bitcoin holders while prices continue to come together to new heights.
This change in the distribution of portfolios suggests that hyperbitcoization, although it is not fully achieved, goes from an ideological thesis to potential behavior of the observable market.
In a market that is increasingly motivated by the narrative momentum and the rotation of liquidity, hyperbitcoization may not be a theme – it could become trade.
“In theory, as the thesis of hyperbitcoinnization is validated in practice and draws more attention, more investors of the BTC will be motivated in Hodl. This does not apply only to individuals, but to institutions and nations,” said FNT.
