As I have orange pilled friends, family, and strangers over the years, I have noticed a clear trend that points towards several key steps to hyperbitcoinization that need to happen at scale (or just by an intolerant minority of truly convicted Bitcoin plebs) in order defeat global fiat money, achieve hyperbitcoinization, and bring about unprecedented human prosperity.
What Is Hyperbitcoinization?
Not to be confused with hyperinflation, hyperbitcoinization refers to a predicted future event in which bitcoin becomes the dominant global reserve currency. It’s the flip-side event of what takes place alongside the hyperinflation of all the world’s fiat currencies.
Hyperinflation occurs when new money is flooding a country’s economy so rapidly that its value collapses relatively instantly. Its purchasing power shrinks exponentially faster as governments simultaneously try to print new money and pay off old debt.
Don’t believe me? Then why has every major fiat currency of the last century depreciated more than 90% against “stable” reserve assets like gold? It’s because inflation devalues the purchasing power of whatever is being inflated. If it’s a money supply, then all its holders suffer the consequences.
Hyperinflation leaves its victims seeking a safe haven. That’s where hyperbitcoinization occurs.
It may sound like a pipe dream, but as appreciation for an immutable, decentralized ledger emerges due to the increasing rate of failures in the fiat system, more and more people will find bitcoin as a safe haven from counterparty risk. That benefit may become highly valuable to the world as counterparty risk spreads due to wealth consolidation among the largest financial institutions like BlackRock, central banks, governments, and the like.
In the fiat system, wealth trends towards the top as large banks swallow up the bankruptcies of smaller regional banks throughout the world. Our economy becomes less efficient over time as a result, as capital becomes increasingly tied up in financial instruments as opposed to the people who generate all the productivity.
Instead, a world post-hyperbitcoinization flips the script so that productivity gains accrue at the base layer — in our money itself — leading to greater purchasing power for everyone to work with and put to use.
To achieve hyperbitcoinization, however, it will take a lot of work. While developers may be implementing the technology, it’s ultimately up to the users to give that technology a purpose.
How Can We Achieve Hyperbitcoinization?
If you’re reading this, it’s likely that you’ve already completed at least one of these eight steps to hyperbitcoinization — but one isn’t enough. In order to achieve true hyperbitcoinization, we need a globally distributed contingent of truly convicted Bitcoin plebs engaging with all of these steps. The sooner we all complete these steps and build a Bitcoin standard in our own lives, the sooner we can all enjoy unprecedented human prosperity.
1. Stay Humble. Stack Sats.
An important lesson on sat stacking
byu/SleepyChino inBitcoin
Stacking sats is the first step to hyperbitcoinization. Until you have actually stacked sats, you have not truly begun to venture down the Bitcoin rabbit hole and set out on your own personal journey toward hyperbitcoinization.
Manually buying bitcoin on a recurring basis can be time-consuming and require a level of understanding that new users are not yet familiar with. This is where auto-stacking sats comes in. By setting up a recurring Bitcoin purchase, hodlers don’t need to worry about Bitcoin price volatility because they buy at every price prices without constantly monitoring the market. It’s a low time-preference strategy, perfect for those who want to build their wealth over time. The higher the Bitcoin price goes, the more slowly you accumulate bitcoin. The lower the price goes, the more quickly you accumulate more bitcoin.
The majority of people will get their first sats via a KYC platform like a KYC Bitcoin exchange or Bitcoin ATM. After you have spent some time in the Bitcoin space, you will inevitably discover ways to obtain them without undergoing KYC, including taking them as payment, receiving donations, earning them for publishing content online, routing payments over the Lightning network, and of course, mining them.
There are countless unique ways you can stack sats with bitcoin. Depending on your circumstances, you may be able to use more than one.
Buying Bitcoin
Buying bitcoin is how almost everyone stacks their first sats and it’s an incredibly important part of the Bitcoin ecosystem, because ultimately, buying bitcoin is what determines the price.
Without buyers, the price never goes up. In fact, without constant buy pressure, it’s easier for the Bitcoin price to be manipulated downward via derivatives and fractional reserve Bitcoin banks.
If we want to see true hyperbitcoinization and not a fractional reserve Bitcoin system, it’s incredibly important that bitcoiners buy all of the sats on exchange order books and withdraw them to our own wallets. Whenever you buy bitcoin, you are either directly or indirectly filling an open sell order somewhere. As soon as all of the open sell orders are filled at the current price, the price moves up to the next sell order until all of the bitcoin is purchased at that price. Buying bitcoin once may put minimal upward pressure on the price of bitcoin, but a but buying bitcoin on a recurring schedule puts sustained upward pressure on the price over time.
Unfortunately, this means buying KYC’d sats but there are ways to gain some privacy once you withdraw to your own wallet. If everyone is using bitcoin with the best privacy practices and avoids selling back to KYC off-ramps (which I discuss in greater detail below), then it becomes much more difficult for chain analysis companies to attach real-world identities to Bitcoin addresses and transactions.
If you truly want to help the world achieve hyperbitcoinization, it’s incredibly important that you continue buying bitcoin and de-dollarizing, one way or another.
Accepting Bitcoin
If you have the ability, accepting bitcoin is the best way to stack sats for several reasons:
- You don’t have to surrender any of your personal information.
- You don’t need to invest in expensive mining equipment.
- You don’t need a bank account.
All you need is a simple Bitcoin wallet, and you can accept Bitcoin payments from anywhere in the world.
When you accept bitcoin, not only are you stacking sats, but you’re also helping to grow bitcoin’s circular economy (which is another one of the steps to hyperbitcoinization mentioned below) by enabling someone to use their bitcoin as money to buy goods and/or services in the real world.
If you’re accepting bitcoin directly to your own wallet, you are increasing privacy for yourself, the sender, and also making it more difficult for chain analysis companies to break down Bitcoin’s privacy by associating transactions and addresses with real-world identities.
In order to accept bitcoin, all you need is free open-source software between peers and that’s exactly what bitcoin was made for. It’s a beautiful thing.
Mining Bitcoin
After you’ve ventured so far down the rabbit hole and have an understanding of the trade offs between buying bitcoin vs. mining it, you may decide that mining bitcoin sounds like a good way for you to stack sats.
Mining bitcoin is an excellent way to auto-stack without surrendering your personal information to a third party but it still requires some due-diligence. Even though you’re not dealing with a counterparty, you still need to be vigilant in order to preserve your privacy when mining. High electricity consumption can be a dead giveaway with your electric company.
Mining is a form of DCA by converting electricity into bitcoin on a recurring basis. If you have access to mining hardware and cheap electricity, mining is absolutely one of the best ways to auto-stack sats.
Earning Miscellaneous Bitcoin
Beyond these three fundamental ways to stack sats, there are countless other opportunities to earn bitcoin with certain services, tools, and apps. These include simple online engagements like spinning the Fold wheel (US only), routing payments on the Lightning Network, generating ad revenue on a website, contributing on Stacker News, etc.
Not all of these options are available everywhere in the world so you will have to do some research to see what services are available in your own country. The crucial part is that you stack sats and send them to your own wallet so that you are in control of your own private keys.
2. Secure Your Seed Phrase
Seed phrases make all the difference when it comes to making bitcoin truly sovereign technology. Because your seed phrase is simply your private key in human-readable format, securing it is one of the most important steps to taking full ownership of your bitcoin and ushering in hyperbitcoinization.
Anyone who knows your seed phrase has access to all of the bitcoin in your wallet, so keep it safe. There are numerous ways to secure your seed phrase, including paper, specialized seed phrase storage devices, as well as some DIY options available at your local hardware store.
While paper offers the least level of protection, it may be the perfect medium for you to initially write down your seed phrase and then transfer it to a stronger medium when you have the opportunity to sit down and stamp it into metal.
A number of different Bitcoin businesses have created specialized seed phrase storage devices. Each has its own pros and cons, but the most durable appears to be the steel plates into which you stamp/engrave/punch the first four letters of your seed phrase. One of the simplest options is the PunchPlate which is at a very reasonable price point.
DIY methods are especially popular since you can buy all of the essential equipment and supplies at your local hardware store without compromising any of your personal information.
Certain do-it-yourself methods will require specialized power tools, such as a rotary tool (Dremel), while others will simply require hand tools, such as a letter/number punch set and a hammer.
Finally, ensure that you can properly recover your Bitcoin wallet by testing your backups.
You need to think very carefully about how you come up with your seed phrase, what medium you will write on, stamp on, or engrave it on, how you store it, and how easy it is to recover in case of emergency. There’s a lot to proper seed phrase storage that you may haven’t thought of before, so do thorough research to determine which strategy is right for your situation.
3. Control Your Private Keys
To be certain that you have complete control over your bitcoin, you absolutely need to control your private keys. If you bought any sats from a Bitcoin exchange, you need to withdraw them to your own wallet.
You cannot hold any bitcoin on exchanges. You cannot use bogus Bitcoin vendors such as Robinhood or PayPal. Bitcoin needs self-sovereign private key holders for hyperbitcoinization to unfold.
Not your keys, not your bitcoin. Period.
Any sats on an exchange can be used to (temporarily) suppress bitcoin’s fiat price via a fractional reserve bitcoin. When you withdraw sats to your own wallet, those sats can no longer be used to suppress the price. If you’re auto-stacking sats with a DCA purchase from a Bitcoin exchange, auto-withdrawals are an incredible compliment. The combination of DCA auto-stacking and auto-withdrawal is a powerful combo. Automatic recurring purchases from exchanges ensure constant upward pressure on the price, while automatic withdrawals assist to prevent price suppression via fractional reserve Bitcoin banking.
4. Run Your Own Bitcoin Node
Don’t trust. Verify. It’s yet another commonly used saying amongst the Bitcoin plebs. When you stack sats, self-custody, and run your own full node, you become part of the Bitcoin network itself and not just a Bitcoin owner.
Running your own node means that you have a complete copy of the entire blockchain and the UTXO set. You don’t need to ask a third-party server about the balance of your addresses. You don’t have to trust someone else to tell you how much bitcoin you have.
You have your own node that you can VERIFY how much you own.
Not only does running your own full node mean that you can verify your own wallet balance and UTXOs, you can also open payment channels on the Lightning Network if you choose to.
As soon as you are stacking sats on a recurring basis via some sort of auto-stacking method, secured your seed phrase, regularly withdraw them to your own wallet, and run your own node to verify every blockchain transaction, you have achieved a high level of Bitcoin skill.
All you need to do beyond this point is just use your bitcoin efficiently, effectively, and privately as you help educate your friends and family about bitcoin.
5. Practice Good Privacy
In order to best preserve the privacy enhancing feature of bitcoin, you need to practice good privacy. When you use bitcoin privately, you increase your own privacy by a large amount but you also increase the privacy of other Bitcoin users by a small amount. The more of us who follow the best Bitcoin privacy practices, the more safety and security we can all enjoy.
If you take special care, you can actually learn how to use bitcoin anonymously and without a bank account, proof of address, or national identification number.
Here are just some of the most important things you can do to practice good Bitcoin privacy.
- Run Your Own Node (see previous step).
- Mix your Bitcoin stack with CoinJoin to make it difficult for bad actors to follow the flow of sats on the blockchain.
- Maintain proper coin control for basic control over which fractions of a bitcoin you use when you send and receive bitcoin.
- Use burner wallets to occasionally erase transaction history.
- Use Lightning for small payments that settle in seconds rather than minutes.
- Avoid selling to large centralized exchanges.
The more bitcoiners that practice good privacy, the more privacy we all have as a network, which helps all of us achieve the steps to hyperbitcoinization.
6. Avoid Sending Bitcoin To KYC Platforms
In order to defeat the status quo and fiat financial system, you have to avoid selling your bitcoin back to a KYC off-ramp.
Chain analysis works both forwards and backward. Not only do chain analysis companies monitor your Bitcoin activity after you withdraw your sats, but they also retrospectively analyze the history of every sat that you deposit to KYC Bitcoin exchanges. This double-edged surveillance enables chain analysis companies to connect the dots between KYC on-ramps and off-ramps and know with relative certainty what you do with your bitcoin, how you received them, who you are trading with, and doing business with. Do NOT give them any more information than they already have.
It’s one thing to buy from a KYC on-ramp because that’s where most liquidity is and where price discovery happens but if you sell back to an exchange, you’re providing chain analysis companies with even more information than they already have.
Since bitcoin is money, it is best to spend it as money to buy goods and services from the global Bitcoin community of retailers and e-commerce stores. If you need fiat for something, carefully consider the option of selling online using a decentralized platform like Robosats, Bisq, HodlHodl, or selling for cash to people that you personally know and trust.
7. Grow The Bitcoin Circular Economy
Rather than selling your sats for fiat on any sort of platform, try to grow the Bitcoin circular economy by using your bitcoin as money with other plebs like you. When you spend bitcoin as money, you make it more difficult for chain analysis companies to link real-world identities to transactions and addresses, and you help other bitcoiners achieve the first step of stacking sats and thus step closer to hyperbitcoinization.
Remember when I said that accepting bitcoin as payment is probably the best way to stack sats? That’s because everybody involved benefits in that situation. The sender gets exposure to learn and use bitcoin, the recipient gets to earn bitcoin, the Bitcoin network benefits from greater adoption, and privacy wins as more people opt out of a KYC-driven system.
If everyone practices good privacy and is actively working on growing their own local circular economy, KYC becomes less relevant, chain analysis becomes much less effective, and we get the world one step closer to hyperbitcoinization.
8. Orange Pill Your Friends & Family
Now that you have secured your own financial freedom and completed all of the above steps towards hyperbitcoinization, you have a responsibility to orange pill as many others as possible and help them to complete the above steps.
Send your friends and family Bitcoin books. Point them to other articles on WhatIsBitcoin.com. Send them some bitcoin yourself just so they can get their hands on it!
Orange pilling can come in many forms. It can be writing blog content, producing infographics, making memes, printing stickers, publishing a newsletter, launching a podcast, creating YouTube videos, or even starting a company that helps nocoiners to stack their first sats. It can just be sharing existing Bitcoin content and tools to help others understand. The important thing is that you’re bringing others into the best Bitcoin practices that build a robust Bitcoin ecosystem.
This Is How We Achieve Hyperbitcoinization
I understand that not everyone has access to the tools and services to make all of these a reality all at once. Some may not have the ability to make all of these a reality at all. What’s important is that there’s a continually growing number of people around the world who are actively working toward achieving as many of these as possible.
This is how we stack sats, secure our private keys, combat price suppression, verify that we actually OWN our money, impede financial surveillance, build independent micro-economies within our communities, and help others do the same.
If we all complete even the first 4 of these 8 steps to hyperbitcoinization, it’s only a matter of time before a Bitcoin standard takes over as the global store of value and more.
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