Bitcoin Could Quickly Erupt To Overtake Gold if Countries Put BTC in Reserves: Macro Analyst Lyn Alden

Macro investment strategist Lyn Alden says that Bitcoin could surpass gold as a reserve asset if nations start buying BTC and stashing it in their treasuries.

In a new interview on the What Bitcoin Did podcast, Alden tells host Peter McCormack that countries purchasing and holding BTC could be a defining “explosive moment” for the top crypto.

“Some people have been [saying] ‘why don’t some large countries just print a little bit of money and buy Bitcoin and stick it on their reserves?’

If you were to see those cracks in the dam start to appear and you start to see that happening, that’s potentially a really explosive moment where you could have hundreds of billions of dollars of different types of liabilities issued in order to buy Bitcoin, which then is so big for a market that’s still kind of small.

Even though Bitcoin is in somewhat of a correction [right now], we still see that the exchange balance of BTC is hitting multi-year lows, and it’s just because there’s not a lot more being created, it’s pretty latent in its distribution schedule.”

According to Alden, nation-states joining other investors in holding the largest crypto by market cap might lead to “hyperbitcoinization,” enabling BTC to ascend to the level of gold in terms of being an internationally recognized store of value.

“There’s this increasing tendency for strong-handed people to come in and buy [BTC] and put it into cold storage, whether its retail HODLers, or these institutions that say ‘hey we have this five-year view and we’re gonna buy Bitcoin and stick it away.’

If you start to see that on a national level more, that’s the early signs of hyperbitcoinization or basically that BTC quickly ascends to the scope of gold where it becomes an actual recognized international reserve asset.

Right now, it’s not there yet, most countries don’t take [it] seriously as a reserve asset. But the next level up is that gold level worth several trillion dollars and you become commonly held in reserves.”

Bitcoin is exchanging hands at $56,648 as of writing, a 7% decrease from its seven-day high of $60,892.

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Lightning Labs’ Elizabeth Stark And Researcher Lyn Alden Say Bitcoin Can Help Billions Of People

Elizabeth Stark and Lyn Alden spoke about bringing Bitcoin worldwide at the Bitcoin 2021 event.

Lightning Labs CEO Elizabeth Stark and macro economics researcher Lyn Alden, founder of Lyn Alden Investment Strategy, took the stage at Bitcoin 2021 in Miami on Saturday to talk about how Bitcoin is useful for billions of people, not just billionaires.

“People are able to use bitcoin to send value globally, instantly and for almost no fees,” Stark said. “With Lightning you can send a fraction of a cent.”

Stark referenced Lightning Network payments in places like El Salvador, showing that bitcoin can be useful in low-income communities. In particular, she said nearly six billion people live in places without stable currencies and easy access to financial services. Many people may need to travel an hour or more if they want to send a bank transfer.

Alden agreed, saying: “We see some of the most humanitarian and impactful use cases in emerging markets.”

Bitcoin 2021 YouTube Live Stream →

Both women added that usage increases the value of Bitcoin, both the network and the asset class.

“The stronger liquidity gets over time the more and more usable the network gets,” Alden said. “That’s separate from the price fluctuations based on whatever a billionaire is tweeting about on any given day. The fundamentals.”

To hear more about the bitcoin ecosystem follow #Bitcoin2021 on Twitter and Instagram, plus join our conversation on Telegram. And be sure to subscribe to our newsletter to keep up with all the happenings at Bitcoin 2021.

As Stark said, “we’re bringing this technology to the next billion people.”


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