Hyperbitcoinization graph in the context of changes in the value of the cryptographic currency. Although the different stages are depicted as just touching each other, in reality they do intersect. For example, a medium of exchange can be a bitcoin to a critical point.
The path of hyperbitcoinization is described in the red S curve, which also represents the chart of the bitcoin price. Bitcoin begins to pass through a series of microbubbles at the nucleation stage. Each of them reflects a fundamental shift caused by the events that cause it. Experienced retail investors are joined by early risk lovers from the general public. Around the basic concepts of Bitcoin, venture capital funded companies are created. Wall Street firms develop tools to monetize bitcoin. Public corporations adapt it to make payments. And so on.
Bigger price bubbles and endless volatility accompany these phases of early discovery. At this time, bitcoin use scenarios, complemented by improved instruments for its exchange for fiat and selective acceptance among early institutional investors and banks, are an important growth driver. The price rises rapidly, with little or no resistance.
Once the critical point is overcome, the growth and spread of the bitcoin itself becomes exponential. It begins to crowd out the fiat, gaining the characteristics of money, starting with the means of accumulation, then the means of exchange, and finally, the units of calculation. When the flat part of the S curve is reached, the volatility becomes minimal and hyperbitcoinization is considered to be achieved.
I believe that at the time of writing (June 2018), Bitcoin is in the middle or end of the nucleation stage. Current bubble cycles are "microbubbles" on this scale. As we shall see next, a 200-day moving average of Bitcoin at $10,000 is not even a drop in the sea when it comes to hyperbitcoinization.
The cost of all money in the world
The acceptance in society, the resulting demand and the technology of bitcoin cause its growth at a speed determined by the network effect. From a fundamental point of view, the advantages of Bitcoin in the context of monetary properties make it the world's first universal digital currency:
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Lack of boundaries - Bitcoin eclipses the monetary systems that have retained the characteristics of a feudal system that compels people to use the currency imposed on them by the government. Bitcoin is a digital currency that can establish a consensus on a global scale.
Lack of centralized power - Bitcoin has inherent property rights and security. No central authority can confiscate your coins or obstruct transactions using Bitcoin.
Lack of inflationary policies - Government agencies cannot artificially devalue your Bitcoins as they do with traditional currencies. The price is determined by the market. Emissions are based on computers and mathematics.
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