An analyst’s take on how USD’s downfall will impact crypto
- Popular investor Lyn Alden recently appeared in a podcast with Bankless Nation.
- Alden shared her take on the devaluation of the U.S. dollar and its impact on Bitcoin and the crypto market.
Swan Bitcoin’s Lyn Alden recently appeared in a podcast with Bankless Nation. The popular investor, who also serves as an advisor at Ego Death Capital, reflected on the current predicament of the U.S. Dollar and the impact of de-dollarization on Bitcoin [BTC] and the broader crypto industry.
USD and its reserve currency status
Ryan Adams, co-host of the show, suggested that the loss of the USD’s reserve currency status may address the issues associated with wealth inequality in the United States.
He painted a scenario where USD is no longer exported out to the world and manufacturing jobs are brought back to the country, leading to a reduction in unemployment.
Speaking on the matter, Lyn Alden stated that in such a setting the U.S. could pivot from a position of strength to support global payments and the diversification of reserves.
However, Alden believes it is unlikely that the United States would choose such a path. Pivoting from a position of strength and focusing on domestic issues may not be likely in the near future.
As for the impact of USD on Bitcoin and crypto, Alden believes that Bitcoin is not on a big enough scale to be part of the conversation. According to her, in the grand scheme of things, Bitcoin is still nascent when compared to commodities like oil where global trade exceeds $2 trillion every year.
Additionally, the investor acknowledged the possibility of Bitcoin emerging as a reserve asset and a scenario where it is used for global payments.
The fall of the dollar has prompted considerable speculation among crypto circles. Popular crypto personalities including BitMEX’s Arthur Hayes and former Coinbase CTO Balaji Srinivasan are counting on the devaluation of the USD to translate into a bull scenario for the broader crypto market.