- Coinbase CEO seen BTC as a greater hedging instrument in opposition to inflation.
- The markets have been optimistic a couple of U.S. BTC reserve earlier than 2026.
A number of international locations, together with the U.S., face unsustainable federal debt and excessive inflation, which erodes wealth. May there be a greater strategy to defend wealth from inflation or financial instability?
Based on Coinbase CEO Brian Armstrong, Bitcoin [BTC] is a greater hedging various, particularly after the cryptocurrency reached the $100K milestone.
Citing BTC’s 12-year development, Armstrong famous that $100 in 2021 would now be price $17. Nevertheless, in BTC phrases, that $100 would translate to $1.5 million. He urged governments to contemplate BTC reserves to protect wealth. He mentioned,
“Bitcoin is the best performing asset of the last 12 years, and it’s still early days. Every government, especially those looking to create a hedge against inflation, should create a Bitcoin strategic reserve.”
U.S. Bitcoin reserve outlook
Armstrong’s assist for a BTC reserve is critical, given his affect in electing pro-crypto candidates within the 2024 U.S. elections.
President-elect Donald Trump has pledged to make the U.S. the “world crypto capital” and create a nationwide BTC reserve.
Will he honor his pledge? The U.S. authorities not too long ago moved $2 billion in BTC, a part of which is meant for the reserve.
As of now, the market is much less optimistic about Trump forming the reserve throughout the first 100 days of his administration.
Based on the prediction market web site Polymarket, there’s solely a 24% probability that the nationwide BTC reserve will probably be fashioned.
Nevertheless, Kalshi is pricing a 55% probability of making a U.S. BTC reserve earlier than 2026.
That mentioned, different international locations, like Brazil, have floated the BTC reserve thought. Market pundits imagine that an accepted U.S. BTC reserve would set off a sport concept and pressure different international locations to comply with swimsuit.
The tip purpose would push the BTC worth larger, as some analysts venture the coin’s worth may soar to seven figures. On the time of writing, BTC was valued at $102.5K, up 6% prior to now 24 hours.