Ep. 11: Lyn Alden Explains Why the World's Monies Are So Broken
Nov 17, 2023
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Lyn Alden, a financial researcher with a large following, explains the history of money and why government-issued fiat money is not suitable. Topics discussed include quantitative easing's impact on asset prices and inflation, challenges faced by people in countries with devaluing currencies, the evolution of money from barter to Bitcoin, and the role of stablecoins in the future of finance.
Bitcoin provides a decentralized, secure, and innovative approach to finance.
Central bank digital currencies and stablecoins facilitate cross-border transactions and create competition in the global financial landscape.
Bitcoin's decentralization and security make it an attractive asset that sets a new standard in the world of money.
Deep dives
The Rise of Bitcoin: A Solution to the Divergence of Transaction and Settlement Speeds
Bitcoin emerges as a solution to the problem of transaction speed and settlement speed divergence. Unlike traditional systems that rely on centralization or credit to maintain scarcity, Bitcoin offers a decentralized, secure, and scarce ledger. With its ability to process transactions quickly, Bitcoin provides an innovative approach to finance.
The Evolution of Money: Central Bank Digital Currencies and Stablecoins
The future of finance includes central bank digital currencies (CBDCs) and stablecoins. CBDCs offer governments further control and centralization of their financial systems. Stablecoins provide a global market for money and assets, breaking down the barriers faced by traditional currencies. These technological advancements facilitate cross-border transactions and create competition in the global financial landscape.
The Path Forward: Bitcoin's Continued Growth
Bitcoin's decentralization and security make it an attractive asset as it continues to gain adoption and acceptance. Despite attempts to ban or regulate it, Bitcoin proves resilient. It offers an alternative to traditional currencies that can be controlled and manipulated by centralized authorities. Bitcoin sets a new standard in the world of money, serving as a benchmark for other currencies and assets.
The Promise of Financial Freedom
The future of finance holds the potential for financial freedom and inclusion. The decentralized nature of cryptocurrencies, such as Bitcoin, empowers individuals to take control of their money and transact across borders. As more people access these technologies, financial systems will evolve, offering individuals greater autonomy and choice in managing their wealth.
The Path Ahead: Centralization, Global Competition, and Decentralized Innovation
The future of finance presents three distinct paths: central bank digital currencies, which aim for greater control and centralization; stablecoins, which provide global competition for money and assets; and decentralized assets like Bitcoin, offering security, decentralization, and global accessibility. The evolution of finance will likely involve a combination of these paths, driven by market forces and technological advancements.
Lyn Alden is a financial researcher who has a large following among those skeptical of the establishment orthodoxy. She joins Bob to discuss her new book, Broken Money, which explains the history of money and why government-issued fiat money is not suitable for the job.