Lyn Alden: Bitcoin is one of the most reliable assets, like gold and real estate

The American investment strategist believes that in the context of a long inflationary shock, it will be far-sighted to keep bitcoins on the balance sheet of the investment portfolio along with traditional assets.

Lyn Alden on YouTube Podcast with Peter McCormack statedthat bitcoin is now one of the most reliable assets, along with gold and real estate. The macroeconomist added that she does not expect inflation to ease anytime soon as the US continues to print money to meet its financial obligations:

“In developed countries, during inflation, regulators say: “We are going to pay off the debt because it is denominated in a currency that we can print, so we are not going to default. We’ll just print a lot of money and pay those debts. You will receive every dollar, every euro or every pound you are owed. It’s just that it will cost maybe half as much as when you bought the bonds.”

Alden added that inflation will average above interest rates for a long time to come.

“Now you can get a deflationary shock like you did in 2020. The market has already experienced similar short periods when inflation exceeded interest rates, which gradually increased over time,” the investment strategist is convinced.

Alden claims to have invested in a diversified basket of hard assets, including bitcoin, in the face of long-term inflation:

“Most of my holdings are in long-term hard assets such as shares of pipeline energy companies, profitable real food producers, bitcoin, some gold, various types of exchange instruments and real estate.”

Alden emphasized that her diversified portfolio of real assets and required liquidity allows her to rebalance the portfolio at any time, as soon as there are problems in the global market.

The European Central Bank recently warned that the high correlation between cryptocurrencies and stock markets will no longer allow portfolio diversification into digital assets.