2024, the Year of the Bitcoin Bull with Lyn Alden - WBD755

Lyn Alden is a macroeconomist and investment strategist. In this
interview, we discuss the success of Lyn's book before delving
into the complexities of the current economic landscape,
including the correlation between global liquidity and asset
prices, notably Bitcoin. The conversation covers the bond market,
inflation measures, bank insolvency issues, and the impact of
fiscal policies on the economy. Lyn also shares insights on
Bitcoin's price cycles.


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Lyn Alden provides a comprehensive overview of the fiscal and
monetary forces shaping 2023 in this podcast. She details how the
Federal Reserve's tightening measures were counterbalanced by the
Treasury's actions, leading to a stabilization in global
liquidity measures. This balance is crucial for understanding
asset price movements, with Bitcoin's sensitivity to liquidity
dynamics serving as a prime example.


We evaluated the Federal Reserve's performance, monetized fiscal
deficits and the state of the bond market. Lyn acknowledged the
central bank's challenges and the limitations of their tools in
addressing fiscal deficits, a primary inflation driver. Despite
relying on potentially outdated models and theories, the Fed has
shown adaptability in adjusting policies to the economic climate.
Albeit, the level of public debt and deficits may limit the
central bank's control.


Lyn posits that inflation, driven by unresolved fiscal issues and
energy dynamics, could define the next decade. She discussed the
historical context of high inflation and the role of gold and
Bitcoin as hedges against currency crises, noting the increasing
institutional interest in these alternative assets.


We covered the outlook for Bitcoin in 2024, with Lyn underscoring
the importance of viewing its price in logarithmic form,
revealing a pattern of resilience and potential normalization
among institutions. We also discussed the need for scaling
solutions in Bitcoin to make interactions with the asset easier,
cheaper, and more efficient. Lyn mentioned the possibility of
soft forks and covenants, aiming to empower hubs in the Bitcoin
network and improve the user experience.


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Show notes:
https://www.whatbitcoindid.com/podcast/2024-the-year-of-the-bitcoin-bull


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