In a recent discussion with crypto trader Scott Melker, macroeconomics expert Lyn Alden laid out how nations might shift towards adopting Bitcoin (BTC) as a primary financial standard.
This conversation arises amidst the U.S. reaching a staggering $35 trillion in debt.
The idea of a Bitcoin Standard, first proposed by economist Saifedean Ammous in 2018, envisions Bitcoin as a decentralized and market-driven alternative to traditional central banks. Alden proposed several steps countries could take to facilitate this transition:
Alden pointed out that this transition would be gradual, as Bitcoin’s current market cap is too small to serve as a global reserve currency. However, she believes that ongoing fiscal challenges in the U.S. might drive institutions and governments to start accumulating Bitcoin, which could spur its growth and adoption.
“As the fiscal issues in the U.S. become more apparent, the move towards assets like Bitcoin will likely increase, leading to greater liquidity and readiness for broader use,” Alden concluded.
U.S. Congressman Warren Davidson has vocally criticized SEC Chair Gary Gensler, accusing the SEC of deliberately hindering Bitcoin ownership.
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A recent report from Kaiko Research reveals that Bitcoin’s dominance in the cryptocurrency market has risen to 54.9%, marking its highest point since April 2021.