Coinbase CEO Brian Armstrong believes Bitcoin is better than gold in several respects, predicting that nations will hold more of the premier crypto asset over time.
The Bitcoin vs. gold debate continues. Conversations about which is better between the physical and “digital gold” are now commonplace among global financial market analysts and investors.
A clip of Coinbase CEO Brian Armstrong’s thoughts on the hot debate is trending again on crypto Twitter. In the clip, he stressed Bitcoin’s superiority over the prominent traditional financial asset class.
Bitcoin: A Better Form of Money Than Gold
For context, the video is a clip of Armstrong’s response to a question from South Africa’s Lesetja Kganyago at the World Economic Forum conference in January. The Bitcoin critic questioned why governments would create strategic reserves of an asset without intrinsic value.
In response, Armstrong emphasized Bitcoin’s massive utility and its superior properties compared to gold. For perspective, he noted that while gold shares the same scarce nature as Bitcoin, the digital asset is a better form of money.
The Coinbase CEO cited Bitcoin’s better divisibility and portability as a major advantage over gold. Furthermore, he noted that the digital asset has more utility than its physical counterpart. Notably, its rapid transactional acumen and application in the growing digital payment system trounce gold’s physical and difficult-to-move nature.
Meanwhile, Armstrong also highlighted Bitcoin’s price performance, which surpasses that of gold. He noted that the largest cryptocurrency by market capitalization has been the best-performing asset of the last decade, outperforming most traditional asset classes.
For perspective, Bitcoin has increased nearly 34,000% over the last ten years. On the other hand, gold has grown 181% during the same timeframe.
Governments Would Hold More Bitcoin Soon
Furthermore, Armstrong advocated that nations quickly adopt Bitcoin. Interestingly, he suggested that governments would create a strategic reserve strategy for Bitcoin, which would soon reach or surpass their stash of gold.
“It (Bitcoin) might start with being 1% of their reserve, but I think over time it would come to be equal to or greater than gold reserves,” Armstrong said.
Interestingly, nations are beginning to adopt Bitcoin. Pakistan recently announced it would create a strategic Bitcoin reserve, inspired by the United States. Recall that, spurred by pro-Bitcoin President Donald Trump, America established a national reserve for the crypto leader.
Other nations like El Salvador, Bhutan, and China also hold a substantial amount of Bitcoin. Data from BitcoinTreasuries shows that 12 countries hold Bitcoin, with their combined stash amounting to 527,764 BTC ($55.7 billion).
Gold-holding companies are also switching their allegiance. UK-based gold mining firm Bluebird recently announced it would invest some of its revenue into a Bitcoin reserve.
