With the recent Coronavirus outbreak and the looming recession, a number of bitcoiners think a bitcoin-induced form of fiat currency demonetization will take place, otherwise known as ‘hyperbitcoinization.’ These speculators believe that the protocol will be uncontrollable and eventually be adopted by everyone leading to hyperbitcoinization.
However, a few speculators believe digital assets in the crypto-economy are actually meant to further the underground shadow economy. The top countries in the world with the biggest shadow economies include places like the United States, Brazil, Italy, Russia, Germany, France, Japan, The United Kingdom, and Spain.
Speculators are assuming that it’s the perfect time to usher in a “New Deal” similar to the way Wall Street and Franklin D. Roosevelt (FDR) restructured the American monetary system. Governments and central bankers are already pushing a few versions of digital cash and a cashless society, but the systems are centralized and meant to monitor people’s everyday transactions.
According to a crypto news site, cryptocurrencies could grow immensely valuable, even though they would only be used within the underground financial system. However, digital currency like bitcoin could easily be valued for far more than six-figures if entire the shadow economy adopted the decentralized asset.