Lyn Alden, a top macro expert, has laid out a roadmap for countries to embrace the Bitcoin Standard. This comes as US debt hits a whopping $35 trillion.
The Bitcoin Standard, first proposed by Saifedean Ammous in 2018, aims to replace central banks. It's seen as a decentralized alternative to the current system.
Alden outlined several steps for countries looking to adopt Bitcoin. "Adding some to the reserves would be one of the options," she said. She also suggested attracting Bitcoin businesses and making it legal tender.
But it's not a quick fix. Bitcoin's market cap is still too small for it to be a reserve asset or legal tender right now.
However, Alden thinks US fiscal issues could change this. They might push institutions and countries to buy Bitcoin. This could create a growth spiral, paving the way for wider adoption.
"As the US goes through its fiscal spiral, there are more and more obvious signs on the wall to get into these other assets," Alden explained. She believes this could make Bitcoin "more liquid" and "more widely held".
The transition won't happen overnight. It's a gradual process that requires careful planning and execution.
Alden's insights come at a crucial time. Many are questioning traditional financial systems. Bitcoin offers a potential alternative.
But challenges remain. Regulatory hurdles and market volatility are still major concerns. Critics also point to Bitcoin's environmental impact.