This is NOT investment advice.
____________________________________________________________________________________________________________________________________________________________________
Add Bitcoin Rewards To Your Apps - sMiles API/SDK
'Hyperbitcoinization'
At the risk of presenting even more unpopular opinions, here is one perhaps that has been pulling at me for a while. One would be hard pressed to find a stronger proponent of Bitcoin than me, but then again I'm not into the contests over who is the better or worse 'maxi'. Been around since 2013. Not one for jumping up and down waving my arms looking for attention. I've observed a lot. A whole lot. As much as I support Bitcoin 1,000,000% and even more than that, I just don't see 'hyperbitcoinization' the same way as it appears most do.
However - though I once viewed approaching this ghastly fulcrum as unnerving, interestingly as time wore on I started to notice another path emerge.
I once thought there might be room for 2x total L1s. Bitcoin obviously and then "something else". I've never personally 'bet' or emphasized that one or another of the other chains would or would not survive and thrive. I have serious questions about them. But here's one thing that I don't think we can escape as a society.
We live in a credit based society and most certainly within a credit based economic and financial system.
My mind being open to another L1 was if, and only if, the market demanded an inflationary 'crypto' if you will. This isn't me demanding it or vouching for it. This is the possibility of the market demanding it and me being open minded to the market demanding it. This all connects back to my perception of 'hyperbitcoinization'.
Credit Based Society
I don't see it as a binary outcome. To me, it's not "Bitcoin will win" and "the dollar will go to zero". Here's why . . . . . mainly. Society functions within a credit based economy primarily. This is not something that has been with us for a few years. Nor decades. We're talking centuries here.
People buy stuff using credit. People start and grow businesses using credit. People buy their own dwellings using credit. 'Buy Now Pay Later' is increasing in popularity not decreasing. This is the way it is whether you agree or not. Yes, I realize there are also people making cash purchases, etc. The vast majority of society in functional economies have some reliance or complete reliance on credit.
Businesses use credit as well. Commercial Paper market is huge. The government would have to turn off the lights if T-Bills didn't exist.
It seems nearly preposterous to me that society would get to the point where ONLY Bitcoin existed and every single financial transaction in the world was denominated in Bitcoin. This presumes all individuals and entities actually have Bitcoin, enough to function, and have no needs for credit. I'm not sold on that happening.
Within this context I simply don't see how we get to a point where "the dollar is dead" and "the only thing we have or need is Bitcoin".
Stablecoins and Bitcoin Collateral
Alas - a solution. I see more of a blend as time goes on. Bitcoin emerges as the world's premiere and most aspirational form of collateral. Over time, more and more people and businesses will possess it. Stablecoins serve as the tool needed to gain liquidity from Bitcoin without selling/moving it or triggering any tax scenarios. So, what's happening is the collateral and lending arrangements are shifting, not the dollar dying off into extinction.
Given TapRoot on the Lightning Network and the momentum we already see with USDT going on Lightning, this does not seem like an outrageous expectation to me at this point. In a way, the combo of the Lightning Network and Stablecoins eliminates or severely lowers the need for an inflationary 'crypto' to facilitate the math with respect to lending and interest rates. Stablecoins mirror a fiat currency so they are obviously already inflationary in that sense.
Bitcoin is the fulcrum and ultimate point of control or pivot point - pristine collateral. The 'credit based economy' will gradually build up around and on top of Bitcoin by using Bitcoin, among other uses, as the world's premiere and most preferred form of pristine collateral. In fact - by serving as the 'tool I need to get liquidity from my Bitcoin' . . . . . . . . Stablecoins and the local fiat (via TapRoot) end up winning as well.
It's a win-win in the end. That's the way I see it unfolding.
Compete With Friends And Win Bitcoin - sMiles Walking Competitions
Download sMiles and win and earn every single day.
Earn Free Bitcoin Playing Games
Get Free Bitcoin Automatically
