Lyn Alden, a well-known macroeconomics expert, recently discussed the potential for countries to adopt the Bitcoin Standard in a new interview with crypto trader Scott Melker. As the United States continues to increase its national debt, reaching a historic high of $35 trillion, Alden believes that moving towards a decentralized, apolitical, and free-market alternative like Bitcoin could be beneficial.
The Bitcoin Standard, a concept introduced by economist Saifedean Ammous in 2018, is gaining traction as a potential solution to the issues surrounding national central banks. Alden outlines several steps that countries can take to transition towards the Bitcoin Standard, including adding Bitcoin to their reserves, encouraging businesses to operate within their borders, making it legal tender, and eliminating taxes on small transactions involving Bitcoin.
Despite the current size limitations of Bitcoin in terms of market cap, Alden believes that over time, the fiscal challenges facing the US could lead to increased accumulation of BTC by institutions and nation-states. This accumulation could create a positive feedback loop of growth, paving the way for the widespread adoption of the Bitcoin Standard in the future.
While acknowledging that the transition to the Bitcoin Standard will not happen overnight, Alden remains optimistic about the potential for Bitcoin to become a widely accepted legal tender and reserve asset. As more institutions and nation-states recognize the benefits of diversifying into alternative assets like Bitcoin, the market cap and liquidity of Bitcoin will continue to grow, making it more attractive for widespread adoption.
As of the time of writing, Bitcoin is trading at $66,743, showcasing its continued popularity and potential for further growth. With the current economic challenges facing countries like the US, the concept of the Bitcoin Standard offers a unique solution that could help safeguard against inflation and economic instability in the future. By following the steps outlined by Alden and embracing Bitcoin as a viable alternative to traditional central banking systems, countries may be able to navigate the uncertain economic landscape more effectively.
