“Don’t F**k This Up” Why This Could Be A Tsunami: Lyn Alden #Finance

Global Liquidity is one of the biggest correlates with Bitcoin price um and there’s really kind of there’s really kind of two components of global Liquidity when measured like that one is the rate of Credit formation and then

the other one is uh the strength of the dollar because the the global Liquidity is often measured in dollars because a lot of the Liabilities internationally as I previously mentioned are denominated in dollars uh and so that dollar component is pretty important um

and so you can either get uh more rapid Credit creation to improve Global Liquidity or you can get a a weaker dollar uh around the margins and that can improve Global Liquidity because you’re basically changing the denominator at that point

with a $418 million investment spread across several funds including a $238 million stake in Black Rock’s ey Shares Bitcoin trust a significant move is underway in the Bitcoin ETF Market this development aligns with the sec’s increasing openness to mainstream Bitcoin

exchange traded funds signaling a potential bullish momentum for Bitcoin prices investment expert Lynn Alden recently discussed bitcoin’s potential as a store of value and the challenges of volatility and regulation during an interview with journalist Paul Baron alen also highlighted

PayPal’s entry into the stablecoin market with P USD which has quickly reached a Valuation of half a billion dollars while established players like tether currently dominate she emphasized the impact that evolving regulations and the rise of Yield generating

stable coins could have on the market despite these complexities Alden suggests that increasing institutional interest and favorable regulatory shifts might drive bitcoin’s price upward in the near future watch clips from the interview for further insights into Linn alden’s conversation

with Peter McCormack please like this CashNews.co subscribe to the channel and turn on post notifications for more content enjoy the CashNews.co in addition to crossb Capital that has made that point a number of times I’ve been in the camp that Global

Liquidity is one of the biggest correlates with Bitcoin price um and there’s really kind of there’s really kind of two components of global Liquidity when measured like that one is the rate of Credit formation and then the other one is

uh the strength of the dollar because the the global Liquidity is often measured in dollars because a lot of the Liabilities internationally as I previously mentioned are denominated in dollars uh and so that dollar component is pretty important um and so you can

either get uh more rapid Credit creation to improve Global Liquidity or you can get a a weaker dollar uh around the margins and that can improve Global Liquidity because you’re basically changing the denominator at that point um and so I I do

think that uh in the years ahead we’ll probably get another positive Liquidity cycle we’ve been in kind of a a stagnation there for a period of time as central banks try to tighten I think we’ll probably get another move upward and I would expect uh as a base case

for Bitcoin to do pretty well in that environment historically Bitcoin and stable coins have kind of been the two killer apps of of Crypto right they’re the two things that really caught

on with traction through bull Markets and bare Markets alike um I you know Bitcoin

is an emerging store value um basically it has Superior monetary properties the than most other monies we’re familiar with um but because it’s still small it’s still U not widely held um people try to build leverage on it it goes through the cycles uh it it’s volatile as it

reaches its its you know whatever its total adjustable Market is or as it as it gets close to what it eventually will be um stable coins are just dollars in in you know digital form uh it helps serve need for dollars globally uh the de the demand for them and there’s really so far

there’s two main use cases of stable coins there’s one that’s basically the unit of account for uh you know trading and uh you know defi um on various Crypto platforms a lot

of that’s going to be on ethereum and then the other big usage of stable coin is basically demand for dollars in the global South uh much of it Satisfied by Tron uh so it’s kind it’s almost two different worlds of the same asset um and you know as a near-term temporary store of

value like working Capital that’s where stable coins are very useful um basically the ability to tolerate volatility is somewhat of a privilege you basically the the more financially comfortable you are the more you can say I’m willing to hold something for the next

four years whereas stable coins you can kind of think of them as your checking account uh if you’re in one of those environments where dollars are are useful or do you think it will centralize into whether it’s tether usdc py USD or some of the European St coins what do you think is

going to be the future of that market so thus far uh Network effects have been shown to matter Liquidity kind of begets more Liquidity and so so far tether’s Network effect in this has been pretty remarkable um probably stronger than I would have guessed um

it I’ve also been watching some of the Yield generating stable coins or you can kind of think them as tokenized T bills you know uh things that try to pass on the the Yield to the holder rather than the Yield being captured by the issuer um

and even them I mean they they they grow but you like they’re not exactly capturing market share very quickly um right and so Network effects are clearly pretty strong uh among stable coins and I don’t have a firm view on how many they’ll be or how much those Network effects will

entrench because some of it is like a Boolean outcome of regulations you know so some of the onshore ones try to you know turn the arm of the State against the offshore ones and you kind of go back and forth there um so there’s some outcomes that I wouldn’t try to predict I do think

rational for these various entities to try to get into the stable coin Market given how big and and potentially Profitable it can be uh but it’s hard to judge the outcome uh so I think that given status quo I think tether’s in a very strong position uh even I mean a

prime dealer now for example has been more supportive of tether than than the rivals uh on Shore um and so you know given like an absent of very strong efforts to change that I I think the status quo likely continues um you know I think that domestically obviously some stable coins could could

continue to gain market share um but globally tethers so far in the lead that it would take pretty heavy disruption for for that to change so my my assumptions just current momentum continues ly Alden highlights that while bitcoin’s transaction volume is smaller than traditional systems it

matches them in transactions per second she argues that Bitcoin as an international and open source alternative could eventually replace traditional settlement systems which are inefficient with high volumes but few transactions as Bitcoin becomes more widely distributed and less concentrated among

a few holders alen predicts a decline in its volatility an indicator of price stability alen also foresees the growing role of AI in the Crypto industry which she believes will enhance

efficiency and productivity despite regulatory challenges being more pressing for larger Cryptocurrencies she is optimistic about positive legislative developments for Bitcoin pointing to

bipartisan support as a hopeful sign with these factors in play alden’s analysis suggests that bitcoin’s price could increase as adoption grows and Regulatory Clarity improves let’s go back to the interview and watch more Clips to gain insights from Lin Alden well one I just like

to compare this the size of settlement volumes because like you point out is it is a comically large number uh you know America’s GDP is measured in the tens of trillions and but actually gross settlement volumes are literally over a quadrillion um and the reason I find that chart kind of

remarkable is it’s it’s basically the same number of transactions that Bitcoin can do um basically it’s you know it’s somewhere around the same number of of transactions per second on average the difference being it’s not 247 and it’s permissioned um and so

basically Bitcoin is kind of like a fedwire but the global open source one so far much smaller um see and and that that’s kind of why I made that comparison is that you can you can build things on top of it fedwire handles a a comically large amount of processing with a fairly small number of

transactions because it’s the bottom of a layered stack I think of a long time I think you know we’re 15 years in uh you know and I think over the next 15 years that that trend’s going to continue of less volatility basically it’s it’s it’s a in my view mainly

around it being widely held if it’s if something’s not widely held one big player can leverage and blow up and move the market or or Buy in and move the market whereas when you get 5x or 10x more just broad distribution of the asset you have more we there’s historically been a

cycle of distribution where during bull Markets kind of longer term whale holders will will trim their Holdings into that bull bull market and all that Liquidity and then

during bare Markets you know generally kind of rotates back to the stronger hands but every cycle Bitcoin gets a little bit more distributed kind of like you know a startup company becoming a

publicly traded company over time growing get it’s it’s it’s its holder base gets more Diversified and when we hit a certain point it the IL I think will diminish over time and the uncertainty around the asset will diminish over time are you anticipating any movement in this space

in terms or do you feel like this space is starting to see the top of where it’s going to go in terms of AI adoption oh I think it’s going to go way higher than it is now I think one of the biggest challenges is to determine who makes money from this so obviously the GPU makers are

making money and the question is uh you know how much money will be made on the other side of it um this could be one of those quiet revolutions where the biggest winners other than the GPU makers are the basically just various companies or individuals that have productivity increases from this um

and so this is a a long-term productivity Improvement because kind of like how automation uh you know made Blue Collar labor way more efficient basically one you know one worker can do the work of three or five or 10 workers or do you feel like the Harris Camp needs to come out and take a position

so I think that it’s a it’s currently a bigger issue for broader Crypto than Bitcoin because a lot of this uh hinges on what is the security what are the rules around you know

issuing Securities things like that when it affects Bitcoin it’s largely either about mining or about privacy like is is is privacy allowed or they GNA they going to put resources in cracking down on various privacy techniques or not that that affects both Bitcoin and broader

Crypto um I I I personally wouldn’t have super high expectations uh you know for for Harris regarding um you know digital Assets in general I think hope you know

hopefully um they’ll be more constructive than than they have been recently one of the things during the um the Bitcoin conference obviously there were a lot of headlines around Trump speaking and stuff um but there also there also were Democratic politicians there including Rana and then a

number of them uh you know uh co-signed a letter written to the DNC saying that our party you know has to be better at that right so when you look at it from from that perspective that actually the fact that they were there uh and kind of you know getting interest there I think was important

because if you kind of look at this as you know two-party structure if the majority of one party is is happy with the industry and a minority of the other party is happy with the industry then it minimizes the risk of really Draconian opposition against the industry it still might not be a great

place for the industry depending on who wins um but by having some of that bipartisan um interest uh you kind of potentially cut off some of the the the biggest tail risk that could be done the industry Morgan Stanley has significantly reduced its exposure to bitcoin selling most of its

Shares in the grayscale Bitcoin trust and cutting its Holdings in spot Bitcoin ETFs to about $189 million JP Morgan’s exposure is even smaller with just $42,000 in

grayscales Bitcoin fund and $188,000 in the pro Shares Bitcoin strategy ETF despite this institutional interest in Bitcoin continues to grow while Bank of America UBS and HSBC hold smaller spot Bitcoin positions Hedge Funds are increasingly aggressive for example

Millennium management holds over $1.1 billion in Bitcoin ETFs including a $371 million stake in Black Rock’s Bitcoin fund london-based Capilla Investment Management has also invested over

$464 million in spot Bitcoin ETFs Hedge Funds like Elliot investment management and 72 Asset Management have entered the market as well Bitcoin mining has

become another lucrative Avenue for investors D1 Capital has invested heavily in Bitcoin mining companies like bit deer Technologies and Iris energy with the aggregate market cap of major us-listed Bitcoin miners reaching a record $22.8 billion in June considering these

developments is it likely that bitcoin’s price will Surge and how do you view the factors L Alden suggests could Elevate Bitcoin to a widely accepted store of value please drop your thoughts in the comments below share this CashNews.co and hit your thumbs on the like button thanks for

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