Renowned macrostrategist Lyn Alden, in a recent program, described the current state of the global financial system as a “slow collapse,” detailing how individuals are exploited within this system and why Bitcoin (BTC) is the only real way out of this cycle.
According to Alden, the current fiat currency system, due to its debt-based structure, must either grow or die. He argues that governments and large corporations are “shorting” the system by exploiting its loopholes, while ordinary citizens are on the losing side of this game.
“The wealthy and institutions are shorting money by borrowing at low interest rates and buying scarce assets. The poorest, unable to borrow, are bearing the brunt of inflation as their salaries and savings erode.”
In the section on Bitcoin, Alden describes the historical development of money as an evolution of a “ledger.” He lists the advantages offered by Bitcoin’s digital and decentralized structure in contrast to the physical limitations of gold and silver as follows:
Zero Supply Increase: In a world where emerging market currencies have increased by 20%, developed market currencies by 7%, and gold by 2%, Bitcoin is the only asset that will not experience further supply increases beyond a certain point.
Decentralized Trust: Alden reminds us that Bitcoin is not governed by a “council” or “policymaker,” and the rule set is distributed among all users, stating that no one can “debase” the system (empty the value from the currency) for their own benefit.
Energy-Based Security: Unlike systems where fiat currencies can be multiplied with the snap of a finger (by printing money), Bitcoin production and transfer require real-world energy (Proof of Work).
Lyn Alden notes that Bitcoin, with its 17-year history (the Lindy effect), is beginning to prove its worth, and that volatility is a natural price to pay for the adoption of such a new and rare asset.
Alden’s warning is clear: no matter what we do, we cannot escape understanding how money works. The analyst argues that the current system is run by “faulty money,” and that Bitcoin, as a global ledger operating without a central authority, is the strongest alternative for those seeking to escape financial pressure.
Alden points out that since the 2008 crisis, private sector debt has been shifted onto the public sector, and this debt can only be repaid through inflation. According to Alden, the way out of this “hidden tax” cycle is to transition to rare assets that cannot be printed and can be digitally verified.
*This is not investment advice.
