Popular macroeconomics expert Lyn Alden reveals a path for countries to adopt the Bitcoin (BTC) standard.
In a new interview with crypto trader Scott Melker, Alden discusses the potential rise of the Bitcoin standard as the United States records an all-time high of $35 trillion in debt.
The Bitcoin Standard is a concept introduced in 2018 by economist Saifedean Ammous. The term is now used to promote Bitcoin as a decentralized, apolitical and free market alternative to national central banks.
Alden lists several steps a country can take to move closer to the Bitcoin standard.
“If I put my hat on and think: what would you do if you wanted that to be more flexible: in principle, adding some to the reserves would be one of the options.
Moreover, an obvious step would be to encourage companies that build on this to your country. Make it legal tender or at least as a first step abolish taxes for a small amount to enable spending…
You actually encourage it more, and you hold onto some of it yourself.”
Alden emphasizes that a switch to the Bitcoin standard will not happen overnight. She notes that Bitcoin is currently too small in terms of market capitalization to serve as legal tender and reserve assets.
But over time, US budget woes could force institutions and nation states to accumulate BTC, creating an virtuous cycle of growth that paves the way for the adoption of the Bitcoin standard.
“As the US goes through the fiscal spiral, the writing is increasingly clear on getting into these other assets: they’re getting bigger, they’re becoming more liquid, they’re becoming more widely distributed, and more technology is being built on top of them.
They are increasingly ready for it.”
At the time of writing, Bitcoin is trading at $66,743.
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