Macro analyst Lyn Alden says Bitcoin (BTC) is on the way to becoming a medium of exchange — here’s why

Macro strategist Lyn Alden believes it is only a matter of time before Bitcoin (BTC) volatility falls, making it a practical medium of exchange.

However, Alden says in a What Bitcoin Did podcast that the flagship crypto asset is currently failing as an “ideal medium of exchange.”

“In the very early stages, for many people in developed countries, bitcoin is not the ideal medium of exchange unless you specifically need to resist censorship or you are in an unbanked environment. Unless they don’t have a platform or they just want to use it properly, um, they’re great at it.”

According to the macro strategist, Bitcoin’s volatility will decrease as adoption levels increase.

“If you go through five more of these cycles, and we’re 20 years in the future, and Bitcoin is in a more stable state, and it’s held by 30% of the world’s population, no matter how many, you would expect it in that environment be a lot less volatile than it is now.”

In addition to the low adoption rate, the macro strategist says speculation and leverage in the crypto market contribute to Bitcoin’s high volatility.

“[Bitcoin is right now] actually held by a fairly small percentage of the population, there are hidden levers in the system, as we have seen with some of these lenders. For example, it is often used as collateral to place bets on altcoins and the like. So there are several things that can increase or decrease volatility.

So when it goes up in price a lot, a lot of new people are discovering it for the first time. Or at that point they’ve heard about it, but they might not have really looked into it and are starting to look into it again.

So new buyers are pouring in which increases the upside volatility, and then when you get that leverage and that speculation, you get a lot of downside volatility.”

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