El Salvador’s Bitcoin Bond with Lyn Alden

 
 

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“Why don’t some large countries just print a little bit of money and buy bitcoin and stick it on their reserves for example; and if you were to see those cracks in the dam start to appear, and you were to start to see that happening, that’s potentially a really explosive moment.”
— Lyn Alden

SHOW DESCRIPTION

Location: Remote
Date: Monday 22nd November
Project: lynalden.com
Role: Macroeconomist

In the last month alone, Bitcoin has hit all-time high prices, Bitcoin on exchanges has hit multi-year lows, and El Salvador announced a $1 billion Bitcoin bond to fund the development of a Bitcoin city.

At the same time, economic signals have started to flash red. Inflation is on the rise: it's hit 6.2% in the US and is rising at the fastest rate in decades. Traditionally strong bond markets are under pressure and currencies in some parts of the world show signs of distress. The dichotomy is that whilst some search for safe havens, with the lack of a positive yielding bond market, many are looking to riskier assets. 

The economic conditions for bitcoin to become a recognised international gold-like reserve asset are upon us. The scope and scale of bitcoin adoption suggest that major players are literally buying into this narrative. 

In this interview, I talk to macroeconomist and investment strategist Lyn Alden. We discuss the lack of yield in bond markets, El Salvador's bitcoin bonds, inflation and the direction and role of the Fed. 

TIMESTAMPS

00:03:28: Introductions
00:03:53: Global currency collapses
00:08:46: Spiralling inflation
00:09:26: Negative yield on bonds
00:11:52: Investment options and their risks
00:16:57: The Bitcoin investment option
00:18:08: Volcano bonds
00:23:19: Collateralised Bitcoin lending
00:29:58: Financing bond repayments
00:31:13: Early signs of hyperbitcoinisation
00:40:54: Soaring inflation rates
00:52:31: Fed central bank vs Bitcoin free banking
00:56:53: Bitcoin market analysis
01:00:01: Final comments

 

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SHOW NOTES

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Mentioned in the interview:

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