Coinbase CEO Brian Armstrong predicted that Bitcoin (BTC) will reach the “multiple millions price range” if countries begin implementing strategic Bitcoin reserves following the US.
Speaking during an appearance on CNBC’s Squawk Box, Armstrong argued that institutional adoption, the approval of crypto-related exchange-traded funds (ETF) in the US, the potential approval of friendly legislation, and the implementation of a strategic Bitcoin reserve in the US are all significant drivers that can propel the flagship crypto to new heights in the coming years.
According to Armstrong:
“If the US took that path, probably the rest of G20 would follow. I’ve discussed with a number of finance ministers here in Switzerland from different countries around the world the idea of a strategic Bitcoin reserve. They are getting more interested in it now because the US is looking into it.”
He added that Bitcoin has a long way to go, as it will be the new gold standard globally, with the crypto market being even larger than BTC itself.
Heralding financial freedom
Speaking at the Coinbase House in Davos during this year’s edition of the World Economic Forum, Armstrong discussed the role of crypto in heralding financial freedom.
He emphasized the significance of stablecoins and highlighted that they have given access to dollar exposure in countries affected by hyperinflation with just a smartphone.
However, Armstrong argued that the “dollar is not perfect either,” which could be an opportunity to encourage people to consider Bitcoin’s characteristics — such as scarcity — as the new gold standard.
Additionally, he called inflation an “insidious thing” that only affects the “poorest people” holding nothing but cash. He further stated:
“If we actually return to sound money, like this new gold standard, that actually could be foundational to prevent the abuse of many of the fiat currencies and over-printing around the world.”
Rising adoption
Regarding the direction of crypto in the next 10 years, Armstrong believes that “more and more” of the global gross domestic product related to payments will run on crypto rails. He added that stablecoins are currently experiencing that “moment” of surging adoptions across markets.
He also assessed that this stablecoin trend will continue, bringing faster and cheaper payments. However, despite stablecoins being the easiest way to introduce people to dollar exposure, they remain susceptible to inflation-related risks.
Armstrong said that people should be encouraged to figure out how to invest in crypto that appreciates to avoid dollar-related inflation. He also highlighted decentralized borrowing and lending marketplaces as a way for crypto to inject financial freedom in countries with scarce credit lines.
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