Unchained How Will Inflation Impact Crypto? Lyn Alden and Mauricio Di Bartolomeo Explain - Ep.380
Aug 2, 2022
Lyn Alden, founder of Lyn Alden Investment Strategy, shares her deep insights on economics, while Mauricio di Bartolomeo, co-founder of Ledn, brings his firsthand experience with Venezuela's hyperinflation. The two delve into how inflation impacts the crypto landscape, touching on Bitcoin as a potential hedge and its contrasting role in inflationary versus hyperinflationary settings. They explore the link between rising interest rates and crypto adoption, implications of global events like the Ukraine war, and the growing significance of stablecoins and the Lightning Network in volatile economies.
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Venezuela's Hyperinflation and Bitcoin
- Mauricio Di Bartolomeo, raised in Venezuela, witnessed firsthand how hyperinflation destabilized the economy and society.
- This experience led him to Bitcoin through his brother, who started mining it successfully during the crisis.
Long-Term Debt Cycles and Inflation
- Lyn Alden suggests the 2020s mirror the 1930s-1940s due to high debt levels and potential currency devaluation.
- She explains how long-term debt cycles lead to inflationary environments, similar to the post-1929 crash and 2008 crisis.
Inflation vs. Hyperinflation
- Mauricio Di Bartolomeo distinguishes between inflation, a rational response to increased money supply, and hyperinflation, a political issue driven by loss of faith in the government.
- Hyperinflation shortens time horizons and forces people into trading or bartering, as seen in Venezuela.