Broken Money: Why Our Financial System is Failing Us and How We Can Make It Better by Lyn Alden, published in August 2023, is a comprehensive exploration of the global financial system’s flaws and potential solutions. Alden, a respected macroeconomist with a background in engineering and finance, examines money through a technological lens, offering insights into its history, current challenges, and future possibilities, including Bitcoin’s role. This article reviews the book’s content, key takeaways, target audience, and where to purchase it.
What Is Broken Money About?
Spanning roughly 500 pages, Broken Money is divided into two main parts. The first (~300 pages) traces the history of money—from ancient commodity-based systems like shells to modern fiat currencies—highlighting how technological advancements have shaped monetary systems. Alden explains why fiat currencies, unbacked by assets, lead to inflation, wealth inequality, and economic instability, citing examples like the $18 trillion in negative-yielding bonds in 2019 and bank failures following 2022’s monetary tightening. The second part explores emerging technologies, particularly Bitcoin, as potential solutions to these issues. Alden’s engineering perspective makes complex concepts accessible, earning praise on Goodreads (4.5/5 from 181 reviews) for its clarity, though some find the latter sections lengthy.
Key Takeaways of the Book
- Fiat System Flaws: Central bank-controlled fiat currencies are prone to manipulation, causing inflation and economic instability.
- Money as Technology: Money evolves with technology, from shells to digital ledgers, with Bitcoin merging commodity and credit systems.
- Bitcoin’s Potential: Its decentralized, fixed-supply nature offers an alternative to fiat, promoting financial sovereignty.
- Human Impact: The current system exacerbates wealth inequality and limits savings, especially in developing countries.
Who Is This Book For?
Broken Money is ideal for readers seeking a deep understanding of money’s history and modern challenges. It suits beginners and experts alike, requiring no prior financial knowledge. Alden’s clear, layman-friendly explanations make it accessible, as noted by Amazon reviewers who compare it favorably to MBA-level insights. Investors, students, and those curious about Bitcoin or financial reform will find it valuable. While some criticize its length or Bitcoin focus, Preston Pysh calls it a “spectacular” guide to decentralized ledger technology. It’s perfect for anyone wanting to grasp why our financial system struggles and how innovations like Bitcoin could help.
Why Read This Book?
Broken Money is a must-read for its thorough analysis of money’s evolution and the systemic issues plaguing modern finance. Alden’s blend of engineering and financial expertise delivers a fresh perspective, praised by Stig Broderson as “the best book I read this year.” It equips readers with frameworks to understand money’s past, present, and future, emphasizing Bitcoin’s potential to address fiat’s shortcomings. Despite some critiques of its length, the book’s modular design allows readers to focus on relevant sections, making it both educational and engaging for those concerned about financial instability.
Where to Buy the Book?
You can purchase Broken Money: Why Our Financial System is Failing Us and How We Can Make It Better from various online retailers. Here are some options:
