PODCAST: Caitlin Long on Bitcoin as Insurance Against Financial Collapse

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"That's how I think about the asset allocation to bitcoin in my own portfolio. Specifically, what I mean by that is it's the settlement system risk that's the issue. I'm not talking about price risk. Obviously, bitcoin's more volatile than most traditional financial assets, but bitcoin is less volatile from a systemic perspective than I think the traditional financial industry is."

Long spoke with CoinDesk for one of the inaugural episodes of Bitcoin Macro, a pop-up podcast featuring the speakers and themes of CoinDesk's upcoming Invest: NYC conference on Tuesday, Nov. 12.

After 20 years in corporate finance, Long began going to bitcoin meetups, eventually falling all the way down the rabbit hole and coming to provide a vital bridge for colleagues in both spaces.

Why the most interesting chart to Long is the bitcoin hashrate and the spread between household net worth and non-financial sector debt in the United States.

Nolan Bauerle: Welcome to Bitcoin Macro, a pop-up podcast produced as part of CoinDesk's Invest New York Conference in November.

Obviously, Bitcoin's more volatile than most traditional financial assets, but Bitcoin is less volatile from a systemic perspective than I think the traditional financial industry is.

If it's just a blip Like, we just talked about this is the fourth such repo episode, we didn't see Bitcoin correlate to strong performance in the previous ones because frankly, only financial market participants who were paying attention and the issues in the money markets didn't spill over into the mainstream economy.

I'm still curious if you've been able to pick up if the narrative around Bitcoin has changed within the main mainstream financial world over the last six months?

Caitlin Long: Well, the highest correlation of Bitcoin price is to its hash rate, and we continue to see the hash power coming into the network.

As long as that's up and to the right, the general price trend for Bitcoin is going to continue to be up and to the right.

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