Broken Money

Alden begins by defining money not philosophically, but technically. Money is a tool—a ledger technology for tracking who owes what to whom. Before money, humans used mental ledgers in small tribes (favors, debts). As societies grew, we needed external ledgers.

Alden introduces the concept of monetary "hardness" on a spectrum. Hard money is difficult to produce more of; soft money is easy to inflate. This isn't binary—it's a continuum.

Alden emphasizes that the "right" hardness depends on context. In periods of rapid population and productivity growth, slightly softer money might work. But when growth slows and debts pile up, the system breaks—which is where we are now.

Alden provides a sweeping history of money, but with a unique lens: she focuses on the technological constraints that shaped each era's monetary system.

Alden provides a detailed and nuanced account of how we went from gold-backed money to our current broken system. Key turning points:

Alden is careful to note that this wasn't a conspiracy—it was a series of pragmatic decisions by people facing real constraints. But the cumulative effect has been disastrous. The system now requires constant intervention to avoid collapse.

One of Alden's most important contributions is showing how the dollar system affects people in developing countries. While Americans experience mild inflation, people in Nigeria, Argentina, Lebanon, and Turkey experience currency crises regularly.

Alden approaches Bitcoin not as a maximalist, but as an engineer and analyst. She evaluates it based on its technical properties and how it solves specific problems in the current system.

Alden acknowledges Bitcoin's challenges—volatility, scaling, energy concerns—but addresses each with data and nuance. She sees Bitcoin as a long-term monetary evolution, not a get-rich-quick scheme.