Lyn Alden, a well-known macroeconomics expert, isn’t convinced Bitcoin is a practical everyday currency. While she acknowledges Bitcoin’s usefulness for people facing payment restrictions or account closures (like capital controls or de-platforming), she argues that less volatile stablecoins often provide better short-term solutions for these problems.
Why Bitcoin Spending Isn’t Sustainable
Alden believes pushing Bitcoin spending isn’t a long-term strategy. She explains: “Bitcoin won’t become widely used just because people are encouraged to spend it. For widespread adoption (trillions, not just billions, in annual transactions), it needs to solve problems that other payment methods can’t. Right now, that’s not the case, especially with capital gains taxes on every transaction and the availability of stablecoins for low-volatility spending.”
Bitcoin’s True Value: Optionality
Instead of focusing on everyday spending, Alden highlights Bitcoin’s value as a store of value. She says its “optionality” is key: “Owning Bitcoin gives you options other assets don’t. You can easily move your wealth globally without relying on banks or other intermediaries. You can also send money across borders, even to people who’ve been cut off from traditional financial systems. While you can’t pay everywhere with Bitcoin, you can usually convert it to local currency, and in some places, you can pay directly with it.”
In short, Alden suggests that while Bitcoin has its uses, pushing widespread spending isn’t a realistic or sustainable goal at this point. Its true strength lies in its ability to act as a portable and secure store of value.