Coinbase CEO Affirms Bitcoin’s Superiority Over Gold at World Economic Forum

Brian Armstrong, the founder and CEO of Coinbase, America’s largest crypto exchange, stated that Bitcoin is a superior form of money compared to gold. During a recent World Economic Forum event in the UK, Armstrong expressed his support for the US government’s shift towards a Bitcoin standard, a commitment that President Trump made. Armstrong emphasized that Bitcoin is provably scarce like gold but offers greater portability and divisibility. He also highlighted its higher utility and status as the best-performing asset of the last decade. Armstrong believes that it will be important for governments to hold Bitcoin as a store of value over time. He further predicted that governments will eventually allocate more of their reserves to Bitcoin than gold. Currently, governments hold approximately 35,000 tonnes of gold, valued at $3.16 trillion, according to the World Gold Council. The US is leading the effort to establish strategic Bitcoin reserves at both federal and state levels, with other countries like Chile, Poland, Switzerland, Hong Kong, and Germany also advocating for similar approaches. With Trump assuming office, cryptocurrency enthusiasts anticipate that he will fulfill his promise. Senator Cynthia Lummis is spearheading the BTC initiative as Trump’s representative and is pushing for the BITCOIN ACT to establish the reserve. Despite a 31% decrease in trading volume, Bitcoin is currently trading at $105,000, representing a 2.3% gain in the past day. Armstrong also mentioned that the crypto industry expects significant growth under Trump’s administration, as he has positioned himself as a pro-crypto president. Armstrong described the past four years in the US as a hostile environment for the industry due to the lack of regulatory clarity, which was exploited to suppress the industry unlawfully. He did not explicitly name those responsible, but fellow panelist Anthony Scaramucci identified Gary Gensler and Senator Elizabeth Warren as key figures who led the Democrats to lose the presidency, Senate, and House. Denelle Dixon, the head of the Stellar Development Foundation, echoed Armstrong’s sentiments and expressed optimism about more favorable regulations in the US, which would allow the industry to collaborate with traditional financial institutions and demonstrate its real-world applications. In an interview with CNBC’s Squawk Box, Armstrong reiterated the notion of a “new era” and expressed hope that Trump’s first executive order regarding cryptocurrencies would direct government agencies to collaborate and work towards establishing clear rules.