Analyst Lyn Alden Explains How Bitcoin Could Flip Gold As A Reserve Asset
According to a widely-followed macro analyst, Lyn Alden, Bitcoin could flip gold as a reserve asset, if countries will begin accumulating BTC and storing it in their treasuries.
In a recent interview on PeterMcCormack’s podcast ‘What Bitcoin Did’, Alden opines that nations buying and holding BTC could be a big deal for the the leading digital asset.
“Some people have been [asking] ‘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 [currenctly], 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.”
Alden makes a case, where nation-states buying in holding Bitcoin could result “hyperbitcoinization,” which would drive BTC to the same levels as 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 [bitcoin] and put it into cold storage, whether its retail holders, 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 [bitcoin] 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.”
At the time of writing, Bitcoin is trading at $57,612, with 2% gains on a daily chart.
