El Salvador’s Bitcoin Bond with Lyn Alden
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El Salvador’s Bitcoin Bond with Lyn Alden - WBD427
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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.
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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Mentioned in the interview:
Forint marks another new low, Zloty drifts near 12-year trough | Reuters
Bond investors numb to risk, says ‘scared’ veteran Dan Fuss | Financial Times
A Century of Fiscal and Monetary Policy: Inflation vs Deflation - Lyn Alden
Real yields on European junk bonds go negative for first time | Financial Times
Retirement Fund Giant Calpers Votes to Use Leverage, More Alternative Assets | WSJ
El Salvador to Issue $1B in Tokenized Bonds on the Liquid Network
Bitcoin Miners Consider Paraguay In Wake of China Ban | Bitcoin Magazine
Marathon Aims to Raise $500M in Debt to Buy Bitcoin and ASICs
Hal Finney's idea now sees $18 million Bitcoin price prediction | Decrypt
Inflation jumped 6.2% in October, biggest monthly rise in 30 years | CBS
Bitcoin and Bonds w/ Greg Foss and Guy Swan (BTC051) - The Investor's Podcast
Invitation Homes Boosts Rents 11% as Housing Crunch Persists | Bloomberg
Fed Looks Likely to Consider Faster Drawdown in Asset Purchases | Bloomberg
Other Relevant WBD Podcasts:
WBD382: Bitcoin On-chain & Macro Analysis with Will Clemente & Dylan LeClair
WBD374: Debt Cycles & the Rise of Bitcoin with Greg Foss & Dylan LeClair
WBD363: Why El Salvador Made Bitcoin Legal Tender with President Nayib Bukele
WBD032: Tuur Demeester on the Looming Debt Crisis and Central Banks for Bitcoin