In a recent interview, highly respected equity research analyst and investment strategist Lyn Alden shared her thoughts on Bitcoin and other hard assets she recommends as hedges against inflation.

Alden, who provides equity research and investment strategies for clients, made these comments 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 on June 3. 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. 

Image Credit

Featured Image by “EivindPedersen” via Pixabay.com