On Tuesday, the CEO of Coinbase, Brian Armstrong, argued that if Bitcoin is widely adopted, its working principle will be similar to a return to the gold standard. By prepositioning cash, bonds, and other currencies, he thinks it will give the nation’s economy the support needed to withstand any debt increase. This was according to a post he recently shared on his X account.
Armstrong’s idea began as part of a conversation about the U.S. debt situation, which is growing at an unbearable rate. He argued that the key to Bitcoin is its unique traits, and he saw the chance that Bitcoin could resolve this problem.
Different from the unlimited issuing of dollars done by the Federal Reserve (the United States central bank), only 21 million coins of Bitcoin can be generated. Furthermore, mechanisms such as the halving that happens every four years cause the number of coins that miners get as rewards to remain competitive in the industry. This crystallized mechanism makes bitcoin deflationary, which in turn gives it the chance to predictably increase its value.
This characteristic provides Bitcoin with the reputation of a…
