Coinbase Chief Urges Gov'ts to Buy Bitcoin, Cites Superiority to Gold
Coinbase CEO Brian Armstrong is making a bold case for Bitcoin, arguing that it surpasses gold as a form of money and urging governments worldwide to consider adding it to their national reserves. Armstrong's comments, shared on social media, highlight Bitcoin's unique properties and growing track record, suggesting it could eventually become a more significant reserve asset than gold.
Bitcoin's Advantages: Why Armstrong Believes It's Better Than Gold
In a recent post on X (formerly Twitter), Armstrong outlined Bitcoin's advantages, emphasizing its decentralization, scarcity, divisibility, portability, and fungibility. He pointed out that while gold's purity can be difficult to ascertain, Bitcoin's digital nature makes it easier to verify.
Armstrong also highlighted Bitcoin's current market capitalization of approximately $2 trillion, which represents roughly 11% of gold's $18 trillion market cap. He believes Bitcoin's market cap could surpass gold's within the next 5-10 years, making it a more substantial reserve asset. Consequently, he argues that countries holding gold reserves should consider allocating at least 11% of those reserves to Bitcoin.
A Contrarian View: Central Bank Skepticism
Armstrong's comments followed a discussion at the World Economic Forum in Davos, where South African Reserve Bank (SARB) Governor Lesetja Kganyago expressed skepticism about governments holding Bitcoin reserves. Kganyago questioned Bitcoin's strategic value and compared the debate to advocating for reserves of other commodities like platinum, coal, or even beef.
Armstrong's Rebuttal: Bitcoin's Track Record Speaks for Itself
Responding to Kganyago's concerns, Armstrong pointed to Bitcoin's performance as the best-performing asset over the last decade. He suggested that governments should view Bitcoin as a long-term store of value and gradually increase their holdings over time, potentially starting with 1% of their reserves and eventually matching or exceeding their gold reserves.
The Rise of the Strategic Bitcoin Reserve: A Growing Movement
The idea of a Strategic Bitcoin Reserve (SBR) is gaining traction in the United States. Several states, including Wyoming, Massachusetts, Oklahoma, and Texas, have introduced bills to adopt Bitcoin as a strategic asset. At least 15 other states, including Ohio and Pennsylvania are considering similar measures. Furthermore, a recent executive order at the federal level has paved the way for a more formalized approach to integrating digital assets into the country's financial strategy.