Brian Armstrong, the CEO of Coinbase, made a series of posts on social media platform X about the pioneer cryptocurrency, Bitcoin.
He argued that since it provides an alternative to reserve currency, the largest crypto in the world could be the key to extending Western civilization.
Bitcoin’s potential
The chief executive stated that since the US was the country in control of the reserve currency, it could increase deficit spending and inflate the money supply until it would lose that benefit.
Armstrong stated that the Euro and the Chinese Yuan were struggling with their problems and the widespread assumption is that the United States can continue with the inflation.
However, he said that observers had made this assumption without taking into account the alternative that crypto offers, which could be the antidote required for inflation.
But, the Coinbase boss also diverged from the thesis presented by Bitcoin maximalists and argued that it coexistence is possible for the dollar and crypto.
He also added that crypto could serve as a natural check and balance for complementing the reserve currency.
The CEO asserted that Bitcoin could serve and defend American interests in the long term and benefit Western civilization.
The thesis
Armstrong stated that the co-existence of crypto and fiat currency would continue for a long time and he said that the two worlds would be unified with the help of dollar-backed stablecoins.
The Coinbase CEO elaborated his thesis in many follow-up replies and comments and noted that Bitcoin would help ensure economic freedom in Western civilization, such as sound money and property rights.
He also responded to a post that highlighted the argument of economic growth being hampered due to a deflationary currency because lending would become difficult.
Armstrong said that lending would not be prevented; a higher bar would have to be met for lending to happen.
This is because lending would only happen when people would believe that a project is capable of offering better returns than simply holding onto the currency.
Future-gazing
It should be noted that Armstrong has recently been a part of many future-gazing predictions. He had recently suggested that crypto could be used by autonomous AI agents in the future for transactions.
He also stated that the provenance of information could also be established with crypto. He also pointed out that crypto adoption could increase due to NFTs, DeFi, stablecoins, and more.
The chief executive was also optimistic regarding the approval of a spot Bitcoin ETF, which has become a hot topic recently.
The investment product is considered a bellwether for the cryptocurrency’s adoption amongst institutional investors.
In recent days, Bitcoin has been driven to a high of 18 months due to the enthusiasm surrounding the potential approval of a spot Bitcoin ETF, which saw it surpass the $42,000 mark for the first time in 2023.