Stephan Livera Podcast SLP232 Lyn Alden - Bitcoin as Emerging Store of Value
Dec 2, 2020
Lyn Alden, an investment strategist and founder of Lyn Alden Investment Strategy, shares her insights on Bitcoin’s emerging role as a store of value. She debunks common misconceptions and compares Bitcoin to gold, emphasizing its potential as digital gold. Alden discusses the impacts of constant capital inflow and supply dynamics on Bitcoin's price. She also highlights the importance of a multi-asset perspective and addresses the sustainability of Bitcoin mining. Overall, she encourages a cautious yet optimistic approach to Bitcoin investment.
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On-Chain Metrics Reveal Holder Behavior
- On-chain metrics (coins held >1 year, realized cap) track holder behavior across halving cycles.
- These transparent fundamentals let fundamental investors see who buys, who sells, and why.
Concentration Is Common Across Markets
- Bitcoin appears concentrated, but other asset classes like US equities show similar or greater concentration.
- Concentration can heighten volatility but isn't unique or necessarily disqualifying for long-term investors.
Monetary Inflation Fuels Asset Demand
- Different definitions of inflation matter: monetary inflation (money supply) vs. consumer price inflation.
- Bitcoin responds mainly to monetary and asset-price inflation driven by deficit monetization and broad money growth.
