Virtual currency as a means to combat inflation
Brian Armstrong, CEO of Coinbase, a major U.S. cryptocurrency exchange, said on the 4th that virtual currencies may attract attention as an alternative to the US dollar, the key currency.
First, Mr. Armstrong is of the opinion that the natural tendency of countries with a reserve currency, such as the US dollar, is to inflate the money supply and increase deficit spending to the point where they lose the advantages of that position. do.
He also pointed out that the yuan and euro each have their own problems and are currently not a substitute for the US dollar, so it is generally believed that the US can continue to inflate.
Armstrong went on to say that there is little awareness that people currently have an alternative to cryptocurrencies. He is expressing his view that people may start moving from fiat currencies to cryptocurrencies as a way to combat inflation.
Recently, Robert Kiyosaki, known as the author of the bestseller “Rich Dad, Poor Dad,” has called for a shift from fiat currency to Bitcoin and other currencies.
connection: Mr. Kiyosaki, author of Rich Dad: “Invest in gold, silver, and Bitcoin before it’s too late.”
“Cryptocurrency will coexist with the US dollar”
Armstrong went on to say that cryptocurrencies are more of a complement than a replacement for the US dollar and do not pose a threat to the US dollar or the US.
I think cryptocurrencies are a counter-inflationary and counterbalancing complement to the US dollar, and the best way to protect long-term US interests.
It would be better to move from the US dollar to a cryptocurrency than to move to another country’s fiat currency. We also believe that fiat currencies and virtual currencies will coexist for a long time.
He also added that the US dollar-denominated stablecoins USDC and flatcoins will play an important role in unifying the crypto world.
The concept of a stablecoin that is designed to combat inflation and be pegged to the cost of living. The value of a flatcoin is designed to keep what you can buy the same, even if the cost of living increases.
▶️Virtual currency glossary
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Armstrong also said that cryptocurrencies such as Bitcoin (BTC) will long-term uphold and promote core values that constitute economic freedom, such as property rights.
AI and virtual currency
Armstrong also recently commented on artificial intelligence (AI) and cryptocurrencies.
In the future, AI will be increasingly deployed to pay for things like data services, and in that case, when various AI agents make payments to each other, there is a possibility that they will use digitally native cryptocurrencies. He seems to be of the opinion that the price is high.
Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, also expressed a similar opinion in July.
connection: Arthur Hayes: “Bitcoin will be the most preferred currency for AI”