On Monday (June 20), highly respected equity research analyst and investment strategist Lyn Alden explained why she believes that Bitcoin is “true innovation”.
Earlier today, Alden, who provides equity research and investment strategies for clients, took to Twitter to explain why Satoshi’s “innovation is real.”
Here are a few highlights from her Twitter thread:
“Satoshi combined a number of existing technologies (the internet, Merkle trees, proof-of-work, SHA-256), added some tech of his own, and made something innovative. A breakthrough in accounting and money. What followed in his wake was mostly scams. But his is innovation is real…
“Satoshi never promised investment returns. He presented his idea like an academic thesis, and built it. When its use-case became popular, he was concerned, and was worried it was too early. Very conservative, very cautious. In it for the humanitarianism, not the money…
“I’m a conservative value investor. I mostly buy profitable companies that pay dividends. I’m big into commodities and real estate. I shun most unprofitable growth stocks (except for a few, small positions). Yet I buy bitcoin. True innovation. Very interested in its potential…
“Bitcoin could fail in a number of ways… But if bitcoin *doesn’t* fail, and continues to maintain key crypto market share, then watch out. Money is a zero-sum contest. Only the deepest, most liquid, most fungible, most portable, most un-censorable, and most resistant to debasement survive. Bitcoin is leading there…
“I have a diversified investment portfolio. Stocks, cash, bonds, gold, real estate, commodities, bitcoin. Bitcoin is the only one that I think could make a serious difference. Nobody else has a credible answer to the current global monetary problems. It’s a Boolean outcome.“
Earlier this month, Alden shared her thoughts on Bitcoin and other hard assets she recommends as hedges against inflation during an interview with Peter McCormack for episode #509 of the “What Bitcoin Did” (WBD) podcast, which was released as a video on the WBD YouTube channel. Alden gave her take on the current inflation crisis in the U.S., which has reached its highest level in over forty years. Alden warned that she did not see a short-term end to inflation, instead predicting that wealthy, developed nations would continue money-printing in order to maintain their economies.
As reported by The Daily Hodl, Alden said;
“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 continued, saying that money printing would result in lenders being paid at the expense of getting currency worth “maybe half as much” as what they originally paid for securities. Alden predicted that inflation would remain higher than interest rates for a prolonged period of time.
Alden outlined her plan for investors to weather the inflationary storm, including sharing her own basket of diversified hard assets that 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.“
Last month, she did another interview with McCormack for episode #496 of the WBD podcast, where she argued that Bitcoin’s greatest competition in the crypto race would come from central bank digital currencies (CBDCs).
Alden called the digitization of money “inevitable,” and said the primary question facing the market would be which asset becomes dominant. Alden noted that Bitcoin was the most likely candidate to overcome its shortcomings and be successful in the long term, including resisting the influence of government control.
As reported by The Daily Hodl, Alden said:
“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 calling Bitcoin the most dominant cryptoasset, Alden cautioned investors against allocating 100% of their portfolio to Bitcoin. However, she said it was “something silly” to not have Bitcoin at this point in time.