The Bitcoin price is currently plummeting, but according to macroeconomist Lyn Alden we don’t have to worry about the long term. She thinks that the rise of Bitcoin is a matter of more than 10 years.

According to Alden, people are far too optimistic about the speed with which new technologies are overthrowing the established order.

People underestimate the impact of Bitcoin

Although Lyn Alden tempers short-term expectations and urges people to be patient, she also believes that people are underestimating Bitcoin’s potential impact on the global financial system.

“It’s not a one-year, three-year or five-year story. It’s not even a 10-year story. It is a story spanning several decades.

When it comes to technology, people usually overestimate the speed and ultimately underestimate the impact. I think that also applies to Bitcoin,” says Lyn Alden.

“I think people underestimate what Bitcoin can mean for the financial system over a 30-year period,” Alden says.

Bitcoin is eating away at the market share of other assets

For now, according to Alden, Bitcoin’s market cap is still far too small to compare the digital currency with established asset classes.

But the celebrated economist believes that Bitcoin will move toward the top over the long term by eating into the markets for other assets.

“Bitcoin has a market cap of over one trillion dollars. Global wealth, depending on how you measure it, is around $500 or even $1,000 trillion. Bitcoin is only a fraction of 1 percent of that.

In the long term, Bitcoin will eat up savings accounts, government bonds and then everything that we, for lack of anything better, will use as money,” said Lyn Alden.

By this she is of course also referring to shares and real estate, which act as a kind of savings vehicle for many people. If that works, we could see a huge Bitcoin price in the future.

However, this is not the case for the time being and the Bitcoin price is trading at $57,000.

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