Bitcoin's Role as Global Store of Value Gains Prominence

Lyn Alden, a prominent financial analyst, has argued that Bitcoin is more than just a form of currency; it is a foundational element of monetary infrastructure. She contends that Bitcoin's primary function as a store of value is often overlooked by critics who focus on its limited use in retail settings. Alden explains that the transition from a store of value to a medium of exchange is a common path for any asset seeking monetization.

Alden's analysis delves into Bitcoin's evolution from a niche experiment to what she terms "portable capital." Unlike traditional fiat currencies or even gold, Bitcoin offers a unique blend of liquidity, divisibility, and sovereignty, all without the need for centralized infrastructure. This makes it an attractive option for those seeking to transfer value across borders.

According to Alden, Bitcoin has already surpassed many national currencies in terms of its cross-border utility. She places it among the top ten global bearer assets for international value transfer, a remarkable achievement given its relatively short existence of just 16 years. This ranking underscores Bitcoin's growing importance in the global financial landscape.

Alden emphasizes that Bitcoin's growth is part of a gradual process. She predicts that while Bitcoin may not become a ubiquitous form of money overnight, its adoption as a store of value will continue to increase. As volatility decreases and barriers such as capital gains taxes are reduced, more people may choose to spend Bitcoin, further integrating it into the global economy.

She also highlights that holding Bitcoin itself is a form of monetary use, providing optionality and the ability to move wealth globally without the need for a credit intermediary. This feature, Alden argues, is a strength rather than a weakness, as it offers users greater control over their assets.

While stablecoins currently dominate short-term crypto payments, Alden foresees Bitcoin steadily expanding its role as a durable, apolitical store of value. Over time, it could potentially evolve into a more versatile financial tool, serving a broader range of monetary functions beyond its current capabilities.