In his latest video, Bitcoin developer and thought leader Joshua Henslee broke down the concept of hyperbitcoinization and what it would look like. This was a thought-provoking, insightful video that’s well worth a watch.
What is hyperbitcoinization?
Henslee begins by advising viewers to read Daniel Krawisz’s article on hyperbitcoinization. He says it’s mandatory reading before exploring the contents of his video.
While the concept has been maligned and laughed off by small blockers, Henslee says it is simply the voluntary transfer away from the fiat money system into Bitcoin. In a very short time, Bitcoin will be ubiquitous, accepted universally, and its purchasing power will grow exponentially.
Many people reject this idea and see Bitcoin as savings technology or a store of value. However, in reality, it’s an instant, low-fee value transfer system, and it’s infinitely scalable.
This is starting to be priced in via Ordinals. That token was minted for free (plus the network fee), and it’s now a multibillion-dollar ecosystem. If data on a crippled blockchain like BTC is seen as valuable, how much more so will it be on the scalable BSV blockchain?
The limitations of the existing financial system
In the existing financial system, sending a penny over the internet is impossible. Even if it were technically possible, the fees associated with payments would make it too expensive. That said, Henslee doesn’t think micropayments are the killer app; it’s value transfer at fractions of a penny that is truly revolutionary.
Henslee points to Bitmaps as an example of what’s going on right now. People are literally inscribing Metaverse land on BTC. The concept has resonated and taken off, and he thinks everyone should just let it run. It’s the free market at work, and free and fair mints are legitimate.
Henslee rightly says the existing financial system doesn’t let us do any of that. He looks at how everyone traditionally got paid on a Friday, and there was a flurry of economic activity, such as dining out on the weekend. Now, money can be spent much faster, and people can receive daily payments. Creativity will explode on the network as these concepts pick up steam.
The existing financial system is highly inefficient, and Bitcoiners used to understand that (BSVers still do). Bitcoin is making it possible to create value much faster, and since time is valuable, that’s resonating with people.
Bitcoin can’t be stopped and is difficult to regulate, Henslee says. He points to how regulators are years behind on issues like ICOs, and even where prosecutions have occurred, the fines have been small compared to what the issuers made. When billions of people are thinking of how to create value on Bitcoin, it’s going to be incredibly difficult for anyone to even keep up, let alone control.
Henslee sees further implications for the existing system as hyperbitcoinization occurs. People will begin spending their time in different ways, earning lots of value quickly instead of on a per-hour model, and many other changes will come about. It’s going to be a different world, and nobody can stop the Bitcoin revolution.
Roundup of this Joshua Henslee video
- Hyperbitcoinization is when, seemingly suddenly, Bitcoin is ubiquitous, and there’s a move away from the old financial system onto Bitcoin. Of course, it has to be scalable for this to be possible.
- The existing system is slow and inefficient, and Bitcoin is much faster. Henslee emphasizes that it isn’t the coin itself that matters; it’s the fact we can transfer value peer-to-peer instantly and for free.
- The activity on Bitcoin is going to be difficult to regulate, or at least will be hard to enforce rules, in Henslee’s view. Bitcoin was designed to comply with existing regulations, but regulators are often years behind in issuing fines and penalties.
- Ultimately, hpyerbitcoinization is unstoppable. The system is simply better, and creativity is going to explode as people catch on to what’s possible with Bitcoin.
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