It all depends what you mean by the terms ‘hypnosis’ and ‘real’.
Let’s start with stage hypnosis. A very small number of stage hypnotists use or have used ‘plants’ or ‘stooges’ (people who you think are just members of the audience, but who are actually in on the act and know what to do). But the vast majority do not, chiefly because there is no need. All that happens in a stage hypnosis act is that the hypnotist gives people ideas and suggestions, and those people go along with the ideas and suggestions, to a greater or lesser extent.
The skill and talent of the hypnotist consists of devising a good show, creating the right balance of apparent mystery and good fun suitable for his audience, presenting it well and keeping things moving. He also needs the knowledge and experience to knowing deal with people during a live show, ranging all the way from those who never go along with the suggestions to those who are, if anything, a little TOO suggestible.
This is why hypnosis acts work in the same way - the hypnotist start with simple suggestions that everyone tries, and he works with those who seem to be most responsive. This sifting process is repeated until he can do the most ‘advanced’ and impressive routines with the most suggestible people of all. In this context, ‘most suggetible’ simply means ‘the person who, when given a suggestion, produces the most entertaining and memorable response and behaviour’.
There is no such thing as a hypnotic trance involved, there is no mind control, and no-one is being made to do something they don’t want to do.
Clinical hypnosis is slightly different, since it’s not a form of entertainment. It’s supposed to be a form of therapy that can help in many different ways to do with changing attitudes and moods to overcoming fears and bad habits. It is certainly true that many people go for a ‘hypnotherapy’ treatment and report a benefit of one kind or another. However, this is only because clinical hypnosis is one instance of what is known as ritual magic. So long as the person who goes along to the session believes they are receiving an authentic hypnosis ‘treatment’, it doesn’t matter what the hypnotist actually does or what the hypnotherapy is seen to consist of - the results will be exactly the same when assessed in the long term. It’s the same with acupuncture and many similar forms of therapy. If the acupuncturist were to put the needles in all the ‘wrong’ places, it wouldn’t make any difference to the reported results, so long as the ritual and the belief were maintained.
It’s the belief in the ritual that is important. For some reason that we don’t fully understant, these kinds of rituals CAN help SOME people to help themselves… to modify their outlook or attitude, to modify their behaviour, or in some cases to get more from the body’s limited but nonetheless amazing ability to heal and repair itself.
Milton Erickson was a very influential figure in the history of clinical hypnosis, although some of his theories are also used and exploited by stage hypnotists these days. When it comes to tales and reports about Erickson’s abilities and achievements, it can be hard for the non-expert to separate the mundane from the marvellous, and the wheat from the chaff.
I have no doubt that Milton was able to ‘induct’ people very quickly (make them relax or sleep or respond to other suggestions) and in a way that may seem impressive or amazing, but lots of other people can do it too. I don’t specialise in hypnosis routines in my work, but even I have learned some rapid induction techniques. In my world, of magicians, mindreaders, hypnotists and entertainers, we openly talk about ‘rapid induction’ techniques all the time. They are very easy to learn and apply, and yes, they can look very startling.
People who work in hypnosis/hypnotherapy and related therapeutic fields tend to hear many claims made about Erickson’s theories and techniques. Some of these claims seem to stand up to scrutiny, while others may seem somewhat exaggerated to a more skeptical eye. Such factors as inaccurate reportage, multiple re-tellings, unhelpful simplification and some traces of ‘hero worship’ exaggeration may also cloud the true picture a little.
The entertainer referred to in the OP, seen on TV making people ‘accept’ blank pieces of paper as money, is Derren Brown, a hugely successful star of British stage and TV known for his ‘psychological’ style of magic and mindreading. The routine referred to in the OP has nothing whatsoever to so with hypnosis. It was a trick, but that’s all I can fairly say about it.