How realistic is hyperbitcoinization (a tipping point where people start a rush to exit fiat for bitcoin in a fiat devaluation event http://nakamotoinstitute.org/mempool/hyperbitcoinization/). Let's look at some global monetary and gold statistics.
Some talk about bitcoin perhaps one day matching or passing gold market cap. https://www.reddit.com/Bitcoin/comments/70z6p0/if_you_do_the_math_a_single_btc_is_more_than_200/dn7ikck/
at $4400 which Bitcoin has been above for some of this month, it already reached around 1% of gold market cap.
But what other global targets are there for comparison. Globally, all paper currency and coins are valued around $5 trillion - at $4400 Bitcoin was already 1.5% of that.
Paper currency plus bank balances and savings value around $90 trillion - so if Bitcoin got to $50k/BTC (10x recent bitcoin highs) bitcoin would be valued 1% of all money!
So where is the tipping point - where people sit up and take notice - I'm not sure, but 1.5% of all physical currency is already pretty interesting. What happens if/when Bitcoin gets to 10%? Which then gets within reach of 1% of money of physical and bank deposits/savings globally. At some point there has to be a tipping point where money leaving accelerates for fear of falling fiat and we see the adoption S-curve play-out http://www.uversity.com/blog/wp-content/uploads/2011/07/Communication-Technology-Adoption-Peter-Leyden.png
The ETFs and institutional money have barely started yet, and historically gold price was influenced by the introduction of ETFs http://www.marketwatch.com/story/how-gold-etfs-have-transformed-market-in-10-years-2013-03-29
So will hyperbitcoinization happen, who knows. But the possibility is maybe not so far-fetched. It seems that bitcoin price news itself drives financial and other media interest - though maybe for reasons not so exposed to Bitcoin's value position.
(Some data from http://money.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization/ and https://www.reddit.com/Bitcoin/comments/70z6p0/if_you_do_the_math_a_single_btc_is_more_than_200/dn7ikck/)
What would a stable post S-curve adoption price look like economically or geopolitically?
Interesting questions. As we've seen in the eurozone it can be difficult for countries, like Greece, to have a single currency but divergent economic policy - with the Drachma in previous economic downturns, they had been able to exploit a weak exchange rate to rebound by exporting their way out of recession. On the other end we've seen Iceland currency drop 60% https://www.washingtonpost.com/news/wonk/wp/2015/06/17/the-miraculous-story-of-iceland/?utm_term=.5461176249e9 and recover faster. An interesting alternative or future strategy proposed by Icelander Sveinn Valfells was that Iceland adopt Bitcoin as a currency - with it's cheap geothermal power it has unique advantages for Bitcoin mining. https://www.researchgate.net/publication/245327990_Bitcoin_for_Microstates_-_How_Iceland_could_adopt_Bitcoin
Bitcoin and other cryptocurrencies. The estimated replacement cost of the Bitcoin network’s current mining capacity of 3.5 petahash/second is thought to be around $3 billion. Miners are rewarded through the issue of new Bitcoins, through coinbase transactions, and block transaction fees. Currently, the annual revenue of from Bitcoin mining stands at an impressive $592 million. B Bitcoin price. S New supply. F Transaction fees. h0 Initial hashing capacity. C Operational costs. z Technological factor of production. NRE Non-Recurring Engineering costs. T Amortisation period. Sveinn Valfells, PhD & J on Helgi Egilsson Minting Money With Megawatts Presented at Scaling Bitcoin, Montreal September 13, 2015 5 / 16 Mining revenues $568M per annum. Sveinn Valfells, PhD & J´on Helgi Egilsson Minting Money With Megawatts Presented at University of Iceland, April 17, 2015 1 / 23 16. How to Mine Bitcoin Proﬁtably Miners Compete For Network Share Costs determined by design of processors and data centres X Incremental hashing capacity. B Bitcoin price. Valfells explained that firms coming up with similar products like fiat backed stablecoins, ... Live Bitcoin Price & Latest BTC Charts. Today's Latest Crypto News. The Battle of Decentralized Finance (DeFi) Continues As Bitcoin Takes Over Ethereum. Bitcoin News AnTy-May 16, 2020 0. Valfells goes ahead to mention the company’s intention to spread the e-money method of transactions firstly throughout Europe, and much later to other parts of the globe in all instances where cross-border payments are required. ... Bitcoin Price Suddenly Crashes to $8,000 in Self-Fulfilling Prophecy. Analysis September 25, 2019. Cardano (ADA ...
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