On Tuesday, July 29th, Coinbase CEO Brian Armstrong shared the idea that in a consistent advocacy for Bitcoin, Bitcoin could actually be better than traditional Fiat currency and any other forms of money.
The statement has sparked responses among market participants, showing that many support the story, but Armstrong shares this bullish view despite Bitcoin’s negative price behavior over the past few days. This highlights investors’ unwavering attitudes towards assets and its connection in the global financial system despite the hurdles of recurring markets.
Armstrong wins Bitcoin as good money against gold
In his statement, Armstrong described Bitcoin as all other items ever used as money since the advent of the best money and trade ever created compared to gold, highlighting its solid financial quality despite regulatory restrictions.
While Armstrong sees “money” as a common medium of exchange that breaks the barriers to exchange caused by the diversity of human desires, he explained that certain qualities needed for good money can be found in Bitcoin, such as rarity, durability, portability, and visibility.
According to Armstrong, gold is a good form of money considering its durability and importance in storing value, but Bitcoin owns all of the monetary value and so on, so when it comes to gaining financial qualities, it is far below Bitcoin.
He further explained that gold is a good value storage, but that Bitcoin cannot easily move it or make cross-border transactions, as it can. Coinbase CEO describes Bitcoin as digital gold, but emphasized that Bitcoin boasts the key properties of gold and the added quality of gold.
Nevertheless, Bitcoin advocates highlighted the decentralized nature of Bitcoin. This allows users to run on blockchains that are not controlled by government or central authorities, allowing users to perform transactions with the right transparency, security and global accessibility.
Bitcoin portrays certain restrictions in the face of market volatility, but the diversified nature and scarcity of assets presents the main cryptocurrency as a good form of money against traditional Fiat money.
In contrast to speculation from critics, Bitcoin is more than just a speculative asset, but it is a viable financial instrument.
