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Coinbase CEO Brian Armstrong has joined other Bitcoin evangelists in the million-dollar Bitcoin prophecy club. He urges the government to consider building a Bitcoin strategic reserve and suggests its value could reach multiple millions as “the dawn of a new day for crypto” approaches.
Brian Armstrong shared his sentiments during a recent interview with CNBC, during which he discussed the long-term potential of the flagship cryptocurrency and the impact of the emerging policies under the Trump administration within the United States.
Bitcoin’s Value Could Go Into The Multiple Millions.
Despite the latest market fluctuations, Bitcoin, the leading cryptocurrency in terms of value and market capitalization, has recently dominated discussions among industry experts and investors. BTC hit a new all-time high of $109,000 a few days ago, but the bullish momentum soon seemed to slow down, bringing back the debates about its long-term potential. Despite the latest price drops, Armstrong still believes in the future of the asset, stating:
“We have seen incredible growth, and I think it hit an all-time high yesterday, so we feel perfect about that […] we’ll see Bitcoin get into the multiple millions price range over time.”
Verifying gold’s Purity is more complex than Verifying a Bitcoin Transaction
Brian Armstrong states that Bitcoin is a “better form of money” than gold, citing scarcity, portability, and divisibility as key selling points. The Coinbase executive believes that digital assets with a market cap of around $ trillion are poised to surpass gold’s $18 trillion within the next 5 to 10 years. As such, he believes the US government would be wiser if it built a Bitcoin strategic reserve, stating it would make a more substantial store of value than modern asset reserves.
Armstrong’s remarks came following the rejection of the idea for a Bitcoin strategic reserve by the South African Reserve Bank Governor Lesetja Kganyago, who questioned BTC’s strategic importance compared to gold because of its historical role as a standard for currency and a trusted store of value.
Brian Armstrong noted that while gold was centralized and scarce, Bitcoin was the better option because of its unique features, such as portability, divisibility, and fungibility. Moreover, Armstrong observed that verifying the purity of gold was more difficult than verifying a Bitcoin transaction, which was transparent on the blockchain.
G20 Nations Could Follow if the US Led the Way
In emphasizing the potential for Bitcoin’s growth, the Coinbase CEO observed that its current value represents only 11% of gold’s market capitalization. He suggested that every country consider allocating at least 11% of the national gold reserves to BTC and gradually increase their holdings as the digital asset’s market value grows. While giving his prediction as to why the US and other governments should give it strong consideration, Armstrong stated:
“If the U.S. leads by creating a Strategic Bitcoin Reserve, other G20 nations will likely follow.”
Conclusion
Brian Armstrong emphasizes that the increased institutional adoption of Bitcoin, primarily through the ETF segment of the market and other financial instruments, has contributed to the steady climb of the asset’s price. Since Trump won the 2024 presidential election, the price broke the $100,000 barrier and hit the $109,000 mark a few days ago, suggesting that it could still go higher. Armstrong’s prediction could come true if the coin’s upward trajectory persists.
Frequently Asked Questions (FAQs)
What are the benefits of holding a Bitcoin reserve fund?
Bitcoin can offer inflation protection, portfolio diversification, and global accessibility, making it ideal as a valuable reserve asset.
Are there risks associated with a Bitcoin reserve?
The main risks associated with a Bitcoin strategic reserve would be price volatility, regulatory uncertainty, and the need for secure storage solutions.
Is Bitcoin a good hedge against inflation?
Yes, Bitcoin’s fixed supply of 21 million coins and scarcity make it an effective hedge against government-issued currency devaluation.
