Join Our Telegram channel to stay up to date on breaking news coverage
Coinbase CEO Brian Armstrong says that Bitcoin is good for the US dollar, challenging the view that the largest crypto by market cap was designed to replace the greenback as a global reserve currency.
“Bitcoin is good for USD,” Armstrong wrote in an X post earlier today. “It creates competition in a way that’s healthy for the dollar, which helps to provide a check and balance against high inflation and deficit spending,” he added.
Armstrong’s X post included a snippet of an interview he had on Tetragrammation with Rick Rubin on Thursday.
In the interview, the Coinbase CEO said that Bitcoin “provides a check and balance on the dollar in the sense of if there’s too much deficit spending or inflation in the US, people will flee to Bitcoin in times of uncertainty.”
“It might be okay to have 2-3% inflation if the economy is growing at 2-3% but if inflation outstrips the growth of the economy, you’ll eventually lose the reserve currency status, and that would be a massive blow to the United States,” he said.
Armstrong went on to argue that BTC indirectly keeps the dollar in check by ensuring that the US Federal Reserve and financial regulators avoid actions that could undermine confidence in the US economy.
“So I actually think in a strange way, Bitcoin is helping extend the American experiment,” he concluded.
Armstrong’s remarks come as the US national debt continues to spiral. According to data from USDebtClock.org, the US national debt stands at over $38.538 trillion as of 2:02 a.m. EST.
Additionally, the deficit has grown by $69,433.37 per second for the past year as of Dec. 17, with the combined publicly-held and intragovernmental debt rising nearly $6 billion per day, according to the US Congress Joint Economic Committee’s debt dashboard.
Amid the skyrocketing debt, JPMorgan has touted Bitcoin and gold as the “debasement trade” in early October.
While Trump did sign an executive order to create a US Strategic Bitcoin Reserve earlier this year, there has been little progress in the reserve’s creation.
From a price perspective, BTC did manage to soar to a new all-time high (ATH) above $126K on Oct. 6, but has since corrected more than 29%.
Meanwhile, gold has extended its rally, and set yet another ATH above $4,540 per ounce on Friday.
The US dollar’s reign as the global reserve currency may already be coming to an end, according to gold investor and Bitcoin critic Peter Schiff.
In a Dec. 26 X post, Schiff predicted that gold will take the throne from the US dollar as the “primary central bank reserve asset.”
“That means the U.S. dollar will crash against other fiat currencies, and America’s free ride on the global gravy train will end,” Schiff said.
“Prepare for a historic economic collapse,” he warned.
Read more on InsideBitcoins.com
