In a recent interview, Lyn Alden, a well-known stock research analyst and financial strategist, discussed Bitcoin and other hard assets she advises as inflation hedges.
These remarks were made by Alden, who provides equities research and investing ideas for clients, during an interview with Peter McCormack for episode #509 of the “What Bitcoin Did” (WBD) podcast, which was uploaded as a video on the WBD YouTube channel on June 3. Alden discussed the present inflation situation in the United States, which has reached its greatest level in almost forty years. Alden stated that she did not anticipate a short-term end to inflation, instead of forecasting that wealthy, industrialised nations will continue to print money to keep their economies afloat.
According to The Daily Hodl, Alden stated,
In developed countries, it generally happens instead through inflation where they say, ‘We’re going to pay the debt because it’s denominated in a currency we can print, so we’re not going to default. We’re just going to print a lot of money and we’re going to pay those debts.
Alden went on to warn that money printing would result in lenders being paid with currency worth “maybe half as much” as what they paid for assets. Alden expected that inflation will continue to outpace interest rates for a long time.
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Alden described her strategy for investors to withstand the inflationary storm, including her own basket of diverse hard assets, which included Bitcoin:
“Majority of my assets are in these long-term hard assets: things like energy producers, pipelines, profitable companies producing real things, Bitcoin, some gold, different types of commodity exposures, basically real-world exposures, real estate.
“And so basically, my approach is to have this kind of diversified set of real assets as well as some cash flow liquidity to rebalance into any sort of liquidity shocks we get, things like that kind of take advantage of that counter-cyclical approach.“
She had another interview with McCormack last month for episode #496 of the WBD podcast, in which she suggested that central bank digital currencies would be Bitcoin’s main opponent in the crypto race (CBDCs).
The digitization of money, according to Alden, is “inevitable,” and the key question facing the market will be which asset becomes dominant. Alden stated that Bitcoin was the most probable candidate to overcome its problems and achieve long-term success, including resistance to government control.
According to The Daily Hodl, Alden stated,
It checks off a number of boxes, and even the boxes it doesn’t check off are within sight of being able to be checked off as technology improves and as it just gets more widely held, and it becomes better. So I think longer term, I think Bitcoin… You can call it the fastest horse in the race.
Despite dubbing Bitcoin the most dominant crypto asset, Alden cautioned investors against putting all of their money into it. However, she stated that not having Bitcoin at this time was “something foolish.”
