“Bitcoinization is here”: Balaji

Since October 12, 2009, the date of the first known transaction of US dollars (USD) by Bitcoin (BTC), made by Marti Malmi, the digital currency has experienced exponential growth. At that time, this was worth less than 0.1 penny. Today, more than 187 months later, it reached a new historical maximum exceeding 110 thousand dollars per unit.

The foregoing comes from an analysis of the Balaji Srinivasan technological investor who postulates that, although traditional hyperinflation – commonly defined as an increase in prices of a monthly 50% – does not yet hit the dollar, and a form of “superinflation” is already underway when its value against Bitcoin is measured. This concept, called “Superbitcoinization”, redefines the loss of dollar value When comparing it with the meteoric rise of the pioneer digital currency.

This monumental increase, which represents its initial value multiplied by 110 million times, translates, according to the calculations of the report, in a monthly compound interest rate of 10.41% in favor of Bitcoin against the dollar. This implies that, for more than fifteen years, the US dollar is devalued in front of BTC at that constant monthly rate.

“This reaches the 5% objective we define for superinflation,” says the analysis. «So, hyperinflation [tradicional] It has not yet arrived. But the Superinflation against Bitcoin is already here. We have been living it. We are in the middle of the superbitcoinization, ”said Balaji.

This said that the loss of value of the dollar against Bitcoin is not an instant collapse. It is a continuous and progressive wear that, seen in retrospect by future historians, will be understood as an extended transition in time, driven by The appearance of a monetary alternative, Bitcoinindicates. It means that every day that Bitcoin rises in price against the dollar, or that more people adopt it, it is a small step in that gradual process.

With a monthly devaluation of 10.41% of the dollar against Bitcoin, The “Superbitcoinization” thesis poses a scenario in which the dollar, the world reserve currency, faces a significant value erosion and constant when measured against the digital asset.

The analysis concludes with a look to the future, indicating that “there is only one more order of magnitude” in this transformation, and that its effects, which perhaps are only evident for those who closely follow the markets, will eventually become undeniable and transform the way the economy works into the “real life” for all. What Balaji predicts is a fundamental change in the monetary paradigm.

Bitcoin is lifeguard in a monetary system in crisis

While Balaji focuses on the Superinflation, Bitcoin Maximalist Jack Mallers, CEO of the Strike Payments and the Twenty One Capital investment company (both centered on BTC), provides a macroeconomic context that complements the vision of the technological investor.

Jack Mallers considers that the origin of the crisis of the dollar that has led to an unsustainable monetary system initiated with the abandonment of the gold standard in 1971 and exacerbated by the massive impression of money after the crisis of 2008. According to the entrepreneur, the structural commercial deficit of the United States has transferred wealth to countries like China, which reinvote their surpluses in US assets, inflating financial markets while the dollar loses power.

“Printing pieces of paper in exchange for real goods makes no logical sense,” says Mallers, supporting Balaji’s thesis on the collapse of the dollar.

While Balaji offers a theoretical framework, warning about Superbitcoinization as a process underway, Mallers translates it into action through the company led by Twenty One Capital. With 42,000 BTC in its balance, Twenty One is the third company with the most Bitcoin holdings that will quote on the stock market. “We don’t care to overcome the old system; we are here to build a new one,” says Mallers.

Balaji focuses on monetary dynamics, but Mallers adds a human dimension by highlighting the social consequences of the crisis. Import dependence has devastated US manufacturing base. UU., Leaving regions such as the “oxide belt” in decline, he maintains.

It emphasizes that the middle class, unable to pay for housing, education or health, faces a historical wealth gap, while commercial surpluses of countries such as China inflate the assets of an elite. “We have lost our manufacturing base and our middle class is being crushed,” laments Mallers, underlining how superbitcoinization responds to a system that harms the majorities.

Together, Balaji and Mallers paint a future in which Bitcoin arises as a tool to rebalance a broken financial system. Balaji quantifies the superinflation and predicts the fall of the dollar, while Mallers offers a practical solution and social criticism that humanizes the crisis.

With Twenty One potentially leading the adoption of Bitcoin as it intends, superbitcoinization is not a prediction, but a reality that is transforming money. As Balaji warns, “there is only one more order of magnitude”; And according to Mallers, the future of money is here.

Gold is the one who rules, says Peter Schiff

In any case, not everyone shares the vision of Balaji and Mallers about Bitcoin as the future of money. Peter Schiff, a renowned gold economist and defender, argues that BTC lacks intrinsic value and its high volatility makes it less reliable as a monetary asset.

Schiff argues that, unlike the digital currency, said metal He has demonstrated his capacity as a means of exchange throughout historymaintaining his robustness during economic crises. “Gold is a proven refuge, while Bitcoin is speculative and risky,” Schiff said.

Recent data supports part of the Schiff’s position, given that the price of the golden Troy ounce reached a price of $ 3,300, which raises the value of a gold bullion (400 Troy ounces) to more than one million dollars for the first time. This appreciation underlines the confidence of some investors in this as a reservation asset and revives the debate on which asset will prevail in a financial system in transformation.

However, in a recent debate with Schiff, analyst Willy Woo listed the practical difficulties that would cause him to send a gold bullion. With this, you would have to reveal your physical address, take risks of shipping, pay customs taxes and the discomfort of guarding a “piece of metal” for a week until the transaction is confirmed. “Too inconvenient,” he said.