Macro guru Lyn Alden thinks Bitcoin’s (BTC) rise to prominence as a giant asset class will take more than 10 years. During an event hosted by the What Bitcoin Did podcast, Alden said that people tend to think that technologies like Bitcoin will immediately disrupt the current system.

However, Alden emphasized that change happens over a long period of time and that people underestimate Bitcoin’s potential impact on the financial system. She indicated the following

“It’s not a one-year, three-year, five-year story. It’s not even a 10-year story. That’s a story spanning several decades. With technologies, people often overestimate the speed and ultimately underestimate the size, and I think that will be true for BTC as well.

I think people routinely overestimate the speed at which it will fundamentally change the ‘system’, but I think they underestimate the magnitude of what it can do over, say, a period of 30 years or more, such as the transformational change that can take place with how we make payments, in which we store value and the success rate of our investments.”

For now, Alden indicated that BTC’s market capitalization is too small compared to more established asset classes. But the macroeconomist believes that BTC will eventually take over the market share of other assets.

“Bitcoin’s market cap is over a trillion dollars. Global wealth, depending on which measurement you look at, is something from $500 trillion to a thousand trillion, which is a quadrillion dollars. So Bitcoin is only a fraction of 1%.

I think over a long period of time it will start to eat into savings accounts. It is starting to eat into government bonds. It’s starting to eat into things that we monitize because there’s no good money.

During the phase in which this happens, it can be disruptive… Nations will resist this in different ways. They have done this in various ways over the past 15 years. It will be an ongoing story.”

At the time of writing, BTC is trading at $56,900, down more than 8% in the past day.


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