In Broken Money: Why Our Financial System is Failing Us and How We Can Make It Better, Lyn Alden, a renowned investment strategist blending engineering and finance expertise, offers a masterful exploration of money’s evolution and its future. Published in August 2023, the book has sold over 100,000 copies, hit #1 in three Amazon categories, and earned endorsements from figures like Jack Dorsey and Jeff Booth. Alden traces money from ancient ledgers to Bitcoin, arguing that our fiat system—plagued by debt and inflation—is broken, and decentralized technologies offer a path to freedom and stability. Here’s a deep dive into Alden’s insights and why this book is a must-read.
Read the book: Broken Money by Lyn Alden
The Evolution of Money: A Technological Lens
Alden frames money as a ledger—a system to track value—evolving through technological advancements. Part 1 of Broken Money explores ancient systems, from Mesopotamian clay tablets to gold, which outcompeted other commodities due to its durability and scarcity. Part 2 covers proto-banking and the rise of fiat currencies, accelerated by the telegraph’s ability to speed transactions. Alden reconciles two monetary theories—credit-based (debt as money) and commodity-based (gold, shells)—arguing that money is fundamentally a ledger, whether governed by nature or institutions.
Her historical sweep is engaging yet rigorous, showing how technology drives monetary change. For example, gold’s slow settlement lost out to faster fiat systems in the telecommunication age, giving banks and central banks unprecedented power. This sets the stage for her critique of today’s financial system.
The Broken Fiat System
Alden argues that the modern fiat system, untethered from gold since 1971, is failing due to excessive debt, inflation, and inequality. With 160+ currencies, most devalue rapidly outside their borders, creating a fragmented, barter-like global economy. She highlights how central banks’ money printing—evident in 2008 and 2020—erodes purchasing power, disproportionately harming those in poorer nations or without assets. Chapter 16, praised by readers for its clarity, dissects these flaws, showing how inflation quietly transfers wealth to those closest to the “money printers.”
Alden’s data-driven approach shines: global debt has soared, and structural fiscal deficits now drive inflation more than monetary policy. She warns of instability, citing long-term debt cycles and moral hazards like bailouts. Her engineering perspective adds rigor, making complex concepts accessible without jargon, as noted in Goodreads reviews: “I went from a 2/10 to a 5/10 in understanding these systems overnight.”
Bitcoin and the Future of Money
Part 5 of Broken Money explores digital innovations, with Bitcoin as a standout. Alden views it as a “commodity ledger” merging credit and hard money virtues: its 21 million coin cap ensures scarcity, while its decentralized blockchain offers speed and security. Unlike fiat, Bitcoin resists debasement, and unlike gold, it settles instantly across borders. She compares it to historical (gold) and current (fiat) systems, arguing only Bitcoin delivers a “strong currency” with privacy, auditability, and freedom from control.
Alden addresses criticisms, like Bitcoin’s energy use, by framing it as a trade-off for an incorruptible ledger. She’s skeptical of altcoins and central bank digital currencies (CBDCs), which risk surveillance and control. However, some critics, like Reddit’s r/btc community, argue she overstates Bitcoin’s virtues, citing her “disingenuous” small-block stance, though this is a niche debate.
A Human-Centric Perspective
What sets Broken Money apart is its focus on money’s human impact. Alden examines how fiat systems entrench power, limiting financial freedom, especially in authoritarian regimes. Part 6 explores cryptography and open networks, framing Bitcoin as a tool for human rights, as endorsed by Alex Gladstein: “A story about freedom versus control.” Her personal background—rising from poverty to a macro analyst—adds empathy, emphasizing how broken money fails the vulnerable.
Readers on X praise her clarity, with @markjeffrey calling it a “Guns, Germs, and Steel of money,” explaining “what works, why it stops working, and why the next thing rises.” The book’s modular design lets readers jump to topics like Bitcoin or banking without losing context, making it versatile for novices and experts.
Critiques and Reflections
Broken Money isn’t flawless. Some find the early chapters slow, and beginners may struggle with macroeconomic concepts. Critics argue Alden’s Bitcoin optimism downplays its volatility and regulatory risks, and her libertarian leanings may alienate fiat defenders. The audiobook, narrated by Guy Swann, faces minor criticism for background noise, though its 17-hour depth is lauded.
Yet, with over 1,000 reviews across Amazon and Goodreads, the book’s impact is undeniable. It’s a “must-read” for understanding money’s past and future, as Jeff Booth notes: “A brilliant journey through economic and social well-being.” Alden’s blueprint—embracing decentralized systems like Bitcoin—offers hope for a fairer financial order, though she acknowledges the entrenched power of central banks.
For anyone navigating inflation, curious about Bitcoin, or seeking to decode global finance, Broken Money is a game-changer. It’s not just about money—it’s about reclaiming freedom in a system rigged against the many.