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Macro investor Lyn Alden: It is a misunderstanding to equate Bitcoin with "encryption"

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Money is a zero sum game. Only the deepest, most liquid, most fungible, most portable, most censorship-resistant, and most resistant to devaluation will survive.

Original author: Lyn Alden (Founder of Lyn Alden Investment Strategy)

Original compilation: czgsws & Bob, BlockBeats

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This article is based on the views of Lyn Alden, the founder of Lyn Alden Investment Strategy, on his personal social media platform. BlockBeats’ translation is as follows:

Satoshi Nakamoto combined many existing technologies (Internet, Hash Tree, Proof of Work, SHA-256), added some of his own, and made something innovative. Arguably a breakthrough innovation in accounting and currency.

Most of what came after Bitcoin was a scam. But his innovation was real.

I believe the concept of "digital scarcity" is an inevitable discovery following these technologies. However, Bitcoin itself is an invention. The first finder may be a liar. But Satoshi Nakamoto is not a liar. He had a pure mind, a well-intentioned design.

Note: Before entering the US Securities and Exchange Commission (SEC) , I have been fortunate enough to research, write, and teach at MIT related to finance and technology. This includes courses on crypto finance, blockchain technology and currencies.

Through this work, I have come to believe that Satoshi Nakamoto's innovations are real despite all the false hype in the crypto space. Furthermore, it has been and continues to be a catalyst leading to change in the financial and monetary sphere.

At its core, Satoshi Nakamoto is trying to create a private form of money without a central intermediary such as a central bank or commercial bank.

——Gary Gensler, current SEC Chairman, August 2021

Satoshi Nakamoto never promised a return on investment. He pitched his ideas like an academic paper and built Bitcoin. He was worried when bitcoin adoption became popular, and worried that it was too early. Very conservative. very cautious. (Bitcoin was created) out of humanitarianism, not to make money.

Bitcoin should be looked into, it can survive eight 50%+ drops with no one bailing it out and go on to create new ATH. Equating "encryption" with "bitcoin" is a misunderstanding of both. There are risks in everything, but you should at least study Bitcoin, learn from it, it's worth your 100+ hours for it.

I am a conservative value investor. I mostly buy stocks of profitable companies that pay dividends. I really like commodities and real estate. I avoid most unprofitable growth stocks (except for a few small positions). However, I bought bitcoin. This is true innovation. I am very interested in the potential of Bitcoin.

Bitcoin could fail in a number of ways. I did a couple of Peter McCormack about its risks ?v=TmdcbdvF3IU" target="_blank">Podcast. But if Bitcoin doesn't fail and continues to hold a critical share of the crypto market, watch out.

Money is a zero-sum game. Only the deepest, most liquid, most fungible, most portable, most censorship-resistant, and most resistant to devaluation will survive. Bitcoin has an advantage in this regard. Many institutional investors use Bitcoin as collateral when betting their funds on various altcoins or fraudulent cryptocurrencies. If the operation fails, their bitcoins will be liquidated. No Fed bailouts, no shuffle rules, no protectors. Only the real market.

However, Bitcoin still exists. The global currency market system has been broken for decades. Ask anyone in emerging markets and they will say that the developed world pushes asset risk volatility onto them. Censorship resistant currency is important to people, don't ignore it.

I have a diversified portfolio. Stocks, cash, bonds, gold, real estate, commodities, bitcoin. Bitcoin is the only one that I think can have a significant impact. No one else has credible answers to current global currency questions.

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