Recently, highly respected equity research analyst and investment strategist Lyn Alden talked to Emmy-winning journalist Natalie Brunell about Bitcoin.
Alden, who provides equity research and investment strategies for clients, made her comments about Bitcoin during an interview on an episode of the “Hard Money With Natalie Brunell” podcast (which is a joint production of Swan Studios and Bitcoin Magazine).
According to a report by The Daily Hodl published earlier today, Alden had this to say about the Bitcoin price:
“Back when Bitcoin was trading around $30,000, there were some signs that maybe the bottom was in. We had some capitulation, of course. This whole thing was another leg lower and so it does seem at the moment at least that the worst of the selling – the rapid selling, the liquidations are behind us...
“There’s still not a lot of bullish catalysts at the moment in terms of the macro landscape, and so I wouldn’t rule out obviously further down movements in the price, but I do think that based on most ways of kind of valuing Bitcoin or looking at Bitcoin’s history, we are in kind of a deep value zone here… I don’t think investors should ever rule ever out more downward legs as long as the macro situation is this uncertain.“
Alden also talked about Bitcoin’s usefulness as an inflation hedge:
“There’s different types of inflation. There’s monetary inflation and then there’s price inflation that often comes with a lag after that monetary inflation, and what we’ve actually seen for the most part is that Bitcoin is correlated very strongly with money supply growth, global M2 especially as measured in dollars, and so over the past couple years as we got that huge ramp up in in broad money supply around the world, Bitcoin did very well.
“As one would expect, we started to get a reduction in the amount of money supply growth, and you started to see the Fed and some other central banks actually try to push back on the price inflation that was materializing. That’s when Bitcoin has and many other assets for that matter have begun to struggle. So I would say that Bitcoin’s been a useful hedge against monetary inflation, but that precedes the actual price inflation.“
On June 20, Alden took to Twitter to explain why she believes that Bitcoin is “true innovation”.
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.“
Featured Image by “SnapLaunch” via Pixabay.com
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