Coinbase CEO sees Bitcoin as a stability factor as US debt rises

Coinbase CEO sees Bitcoin as a stability factor as US debt rises

##Coinbase CEO promotes Bitcoin due to rising national debt

Coinbase CEO Brian Armstrong suggested in a tweet on March 12 that widespread adoption of Bitcoin could be akin to a return to the gold standard, potentially stabilizing the U.S. economy amid escalating national debt. Armstrong noted Bitcoin's potential as a financial tool that could curb excessive government spending in the US. This insight was shared in response to CFO Robert Sterling's concerns about escalating national debt.

###Threatening escalation of national debt in the USA

Sterling pointed to the alarming rate at which debt is piling up. It is worrying that “trillion dollar amounts” are being added at an ever-increasing pace. Sterling emphasized that the speed of money creation transcends political affiliations and requires “urgent attention.”

###Unique features of Bitcoin to curb money creation

Armstrong pointed to Bitcoin's unique properties that could help limit uncontrolled money creation. Unlike the USD, which the Federal Reserve can print at will, the supply of Bitcoin is capped at 21 million BTC.

Furthermore, Bitcoin is deflationary. The network automatically halves miner rewards every four years or after 240,000 blocks. In the current epoch, a successful miner receives 6,125 BTC. This number will drop by 50% when the halving takes place in mid-April 2024.

The deflationary nature means that Bitcoin can also act as a store of value like gold alongside the USD as a medium of exchange. Bitcoin also has the advantage of being digital, allowing for a seamless transfer of value and living up to its original conception as an electronic cash and providing an alternative to the infinite supply of USD.

###Bitcoin adoption represents a return to the gold standard

Armstrong believes widespread adoption of Bitcoin could be akin to a return to the “gold standard.” In this scenario, Bitcoin could help stabilize prices and strengthen the USD by balancing excessive government spending.

Coinbase continues to play an important role in the crypto and trading world. As a platform where users can trade Bitcoin, among other things, Coinbase actively promotes Bitcoin adoption.

The exchange recently announced plans to raise $1 billion through a convertible debt offering. This is the same strategy that MicroStrategy has used with great success.