People are excited about the new wave of cryptocurrency, but some are worried about hyperbitcoinization. The memes are going crazy over how people who own bitcoins are going to pseudo aristocrats in the foreseeable future. They will be a dominating force in the currency world. A tweet sarcastically mentioned that the hype is as such that in the future, people who do not have any bitcoins will be forced to serve those who will have the cryptocurrency.
The tweet may be sarcastic, but it highlighted an important aspect of the future, that the assets of the future would be dominant by cryptocurrencies like Bitcoin and Ethereum. People are claiming that the tweet was done by a time traveller as the prediction seems to be true, and a famous economist claimed that this tweet is not as far off from reality as the cryptocurrency can achieve success in its mission to achieve and sustain supremacy over the monetary world.
Think Tank
The think tank center in London School of Economics published an article on 27 Feb 2021 stating the dynamics of the future and cryptocurrency. The article mentions how the future aristocrats will be those who will be knowledgeable in digital currency while also being the owners. This will initiate further class divide as the wealth gap will increase exponentially.
Furthermore, the government should be prepared to supervise or dismantle this emerging force. In addition to this, these new aristocrats will not benefit the society as they would not be able to comprehend their wealth – that they acquired through being the first ones to leap into this risk of buying cryptocurrency.
One can say that they are and will get rewarded for savoring a risk that many people did not take. Hence, they are far behind in this race. However, Danielsson summarised the whole gimmick as a hype that will die with the amount of contradiction, and soon the value of cryptocurrency will be back to zero. The future of crypto cannot be predicted because of its volatility as an asset. Things can go either way.
In addition to this, not all economic analysts are worried about the dilemma of hyperbitcoinization. In this world as many of them believe that it can be a solution that can take out the underprivileged economies from the shackles of poverty.
