The Risks of Hyperbitcoinisation with Rob Hamilton - WBD501

Rob Hamilton is a programmer and data scientist. In this
interview, we discuss the risks associated with a transition to
hyperbitcoinisation, the limits to what Bitcoin fixes, the issues
of a libertarian world run on a Bitcoin standard, the benefits to
the energy grid, and Bitcoin’s eternal September.


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Hyperbitcoinization, the adoption of Bitcoin as global money, was
once a theoretical pipe dream that all but the most hardened
Bitcoiners thought would be an impossibility. But we have
witnessed a number of unprecedented events in recent years that
mean impossible scenarios have now shifted into the realm of the
possible.


Does this create a new foundation for conversations regarding
hyperbitcoinization? The abstract idea of hyperbitcoinization has
been enthusiastically supported: it is a fresh new idea that
provides hope for a better world. But where such discussions
could afford to be utopian a few years ago, do discussions now
need to mature as a Bitcoin standard becomes more real?


Are there limits to what Bitcoin can fix? Further, does
hyperbitcoinization create new issues? Would we be replacing one
elite for another? And, if this new world is shaped by a
libertarian ideology, who will determine how to organise
consensus, solve problems and resolve conflict? The reality of
what may be possible certainly requires more sober consideration.


The flip side is that the tremendous benefits that Bitcoin has to
offer could actually be realised. A better world may be within
our reach. The excitement for proponents is that Bitcoin’s
potential is more than just as a new currency; it has
second-order effects such as its use as a payments rail and
arguably more importantly, as a catalyst for a stronger and more
sustainable energy grid.


And all the time, there are new users of Bitcoin who are seeing
in it both novel opportunities, and also new risks to be
mitigated. Wider adoption, therefore, means that what
hyperbitcoinization will become is always evolving. The
discussions on what this means have only just begun.