- Coinbase CEO considered BTC as a greater hedging software towards inflation.
- The markets had been optimistic a few 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. Might there be a greater solution to defend wealth from inflation or financial instability?
In accordance with Coinbase CEO Brian Armstrong, Bitcoin [BTC] is a greater hedging various, particularly after the cryptocurrency reached the $100K milestone.
Citing BTC’s 12-year progress, Armstrong famous that $100 in 2021 would now be price $17. Nonetheless, in BTC phrases, that $100 would translate to $1.5 million. He urged governments to think about 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.
In accordance with the prediction market website Polymarket, there may be solely a 24% probability that the nationwide BTC reserve shall be shaped.
Nonetheless, Kalshi is pricing a 55% probability of making a U.S. BTC reserve earlier than 2026.
Supply: Kalshi
That mentioned, different international locations, like Brazil, have floated the BTC reserve concept. Market pundits consider that an permitted U.S. BTC reserve would set off a sport concept and drive different international locations to comply with go well with.
The top aim would push the BTC worth larger, as some analysts undertaking 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.
