Coinbase CEO Brian Armstrong has issued a new statement as tensions between the US and Iran continue to cause instability in the leading cryptocurrency Bitcoin.
In a new assessment conducted from Account
At this point, Coinbase’s CEO claimed: $BTC He said prices were driven by inflation concerns, not mines, and that prices moved in parallel with inflation concerns.
Focusing on how the Bitcoin network works, Armstrong said that the hash power used for mining does not directly determine the price of Bitcoin. $BTC.
He said that the hashing power or energy allocated to mining does not determine the price. $BTCthat the network difficulty adjusts to maintain block production at the same rate even if miners leave the market.
Mr. Armstrong believes that in the long run, $BTC Price is an indicator of how concerned people are about inflation, and they note that inflation fears are unlikely to go away in the short term, especially given continued budget deficits in democratic countries, which could support long-term demand for Bitcoin.
Armstrong’s remarks come at a time when the debate over energy use in the world of technology and cryptocurrencies is resurfacing. Former Facebook executive Chamath Palihapitiya has previously argued that as AI investment grows, the energy used to mine Bitcoin is shifting to AI. According to Palihapitiya, energy and computing power are now becoming strategic resources with which the two sectors compete.
In contrast, Armstrong emphasizes that Bitcoin price trends are determined more by macroeconomic developments and inflation expectations than by the amount of energy used in mining.
*This is not investment advice.
