Golden Finance reports that according to Cointelegraph, Brian Armstrong, the CEO of Coinbase, publicly stated that Bitcoin is a better form of currency than gold, highlighting the significant advantages of Bitcoin in terms of value storage and trading assets. Once this view was put forward, it sparked widespread discussions in the cryptocurrency and traditional financial markets.
Armstrong’s remarks this time are not groundless. From the perspective of scarcity, the total amount of Bitcoin remains constant at 21 million, a feature guaranteed by its underlying blockchain technology that cannot be tampered with or issued in excess. In contrast, although gold is also scarce, there are certain difficulties in determining its purity. Historically, incidents of counterfeiting such as “lead-plated gold bars” have occurred from time to time, which to some extent has affected the credibility of gold as a means of value storage. In terms of portability and divisibility, Bitcoin has obvious advantages. Hundreds of millions of Bitcoins can be easily transferred across borders instantly through a small USB flash drive. Meanwhile, Bitcoin can be precisely divided to eight decimal places, meeting the needs of various micro-transactions. In contrast, the transportation of gold not only requires a large number of troops to escort it, but also is restricted by its physical properties, making it difficult to divide.
When it comes to return on investment, over the past decade, the annualized yield of Bitcoin has been astonishing, far exceeding 150%, significantly outperforming traditional assets such as gold and stocks. According to Glassnode data, the market capitalization of Bitcoin has reached 11% of that of gold (Bitcoin is approximately 2 trillion US dollars and gold is about 18 trillion US dollars), and the proportion of institutional holdings of Bitcoin has been continuously rising. Armstrong once said straightforwardly, “If the government had allocated 1% of its reserves to Bitcoin ten years ago, it would have recoup its entire gold reserves by now.” Based on this, he put forward a radical initiative to global policymakers, suggesting that they “immediately swap 11% of their gold reserves for Bitcoin reserves”, and boldly predicted that the market value of Bitcoin is expected to surpass that of gold in the next 5 to 10 years.
Armstrong believes that there is a strategic first-mover advantage in the possibility of reshaping the global reserve currency landscape. If the United States takes the lead in establishing the “Bitcoin Strategic Reserve” (SBR), G20 countries are likely to follow suit one after another under the pressure of currency devaluation. From the domestic situation in the United States, 15 states including Texas and Ohio have actively promoted the bill to include Bitcoin in the category of government asset reserves. Trump’s signing of an executive order to establish the “National Digital Asset Vault” has laid the foundation for large-scale reserves of Bitcoin at the federal level. Furthermore, in the payment sector, if the USDC stablecoin is successfully integrated with Musk’s X platform, it will enable global instant settlement. This will undoubtedly further enhance the position of Bitcoin and its related cryptocurrency ecosystem in the global payment system.
As early as January 24th, Armstrong had posted on the X platform, strongly supporting the proposal to establish a strategic reserve of Bitcoin. He pointed out that the divisibility of Bitcoin makes it significantly superior to gold. Each Bitcoin can be subdivided into 100 million satoshi, while the smallest cutting unit of gold is usually 1 gram. Moreover, Bitcoin is portable. Any amount of Bitcoin can be stored in a hardware wallet the size of a fingertip, while gold, which is equivalent to the value of 1 Bitcoin, weighs approximately 1.2 kilograms. At the same time, the liquidity of Bitcoin is also superior. Its decentralization and scarcity are comparable to those of gold, and there is no problem that gold may be mixed with other metal alloys and it is difficult to confirm its purity. It has higher substitutability. He firmly believes that any country with gold reserves should convert at least 11% of its gold reserves into Bitcoin reserves. Moreover, as time goes by, the market value of Bitcoin is expected to surpass that of gold, and the corresponding reserves should also be gradually increased. If the United States establishes a strategic Bitcoin reserve, it is highly likely that other G20 countries will follow suit.
At the World Economic Forum in Davos, Armstrong also shared his views on the regulation of cryptocurrencies and the future of Bitcoin. He believes that under Trump’s leadership, the United States is expected to introduce new cryptocurrency regulations, and congressional legislation will unlock significant investments in the cryptocurrency sector. He predicted that the price of Bitcoin would “enter the price range of millions, millions” and called on the government to hold Bitcoin as a store of value. He also disclosed that the interest of finance ministers around the world in strategic reserves of Bitcoin is growing day by day, and Bitcoin may become the new gold standard. Furthermore, he is extremely optimistic about the prospects of cryptocurrencies, believing that they will lead to a new stage of capitalism and economic freedom. He also predicts that President Trump may sign an executive order allowing banks to conduct cryptocurrency transactions, wealthy clients to invest in digital assets, and banks to hold cryptocurrencies in their investment portfolios.
Armstrong is full of confidence in the future of cryptocurrencies. His view that Bitcoin is superior to gold is of great reference value for both investors’ asset allocation and the evolution of the global financial landscape. In the current context where the cryptocurrency market is booming and the global financial system is undergoing accelerated transformation, the competitive landscape of Bitcoin and gold in terms of monetary attributes deserves continuous attention from all market participants.
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