Bitcoin Is Transformative Technology Because It Is Closing 'The Gap Between Fast Transactions And Slow Settlements,' Analyst Highlights

Macro investor Lyn Alden sees transformative potential in Bitcoin BTC/USD with the emergence of open-source projects like Fedimint and communication protocol Nostr.

What Happened: In an appearance on the Bitcoin Podcast, Alden voiced her optimism about technologies built on Bitcoin’s foundation.

"Technology can change what we have available and where power sources reside," she stated, highlighting how Bitcoin has finally closed the gap between fast transactions and slow settlements.

By enabling money that doesn’t rely on credit-based ledgers, Bitcoin is changing power structures, she pointed out. "It gives people wherever they are, as long as they have some connection to the rest of the world, the ability to choose money that's different from what their environment offers them."

Alden also briefly discussed the role of central banks and monetary policy, hinting at the ongoing tensions between traditional financial systems and the emerging crypto ecosystem. While she didn’t delve deeply into specific predictions, her comments suggested a continued belief in Bitcoin’s role as a hedge against monetary instability.

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Alden is particularly excited about Fedimint, an open-source project combining Bitcoin, the Lightning Network, and federated e-cash. As an investor through Ego Death Capital, Alden sees Fedimint as a powerful tool for communities to operate more efficiently and productively.

The privacy-preserving nature of Fedimint’s e-cash implementation is a key feature Alden believes will become increasingly important. “We went from privacy being normal to surveillance being normal,” she observed. “Some of these technologies can reassert privacy as normal.”

Beyond Fedimint, Alden is enthusiastic about Nostr, an open protocol for censorship-resistant global communication. She sees Nostr and Bitcoin as symbiotic ecosystems, with Nostr serving as an excellent payment discovery tool for Bitcoin wallets.

“Nostr is not as bulletproof as Bitcoin, but there’s this set of relays out there and all these clients connecting to relays,” she highlighted. “We have this kind of data availability matrix out there that makes Bitcoin better, and then Nostr is better because Bitcoin exists.”

Looking ahead, Alden is optimistic about the potential for these open-source technologies to reshape social interactions and financial systems.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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Image created using artificial intelligence with Midjourney.