By The Daily Hodl - 2 years ago - Reading Time: 3 minutes
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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The post Bitcoin Could Quickly Erupt To Overtake Gold if Countries Put BTC in Reserves: Macro Analyst Lyn Alden appeared first on The Daily Hodl.
Original source: The Daily Hodl