Brian Armstrong, CEO of Coinbase, one of the world’s leading cryptocurrency exchanges, shared his views on crypto adoption. Armstrong also reiterated a claim that has been made a lot. According to the CEO of Coinbase, the leading crypto will be Bitcoin’s (BTC) new gold.
“Too early to treat Bitcoin as digital gold”
Brian Armstrong, CEO of Coinbase, one of the leading cryptocurrency exchanges, explained his views on space in a new episode of Coinbase’s Around the Block podcast. Armstrong says the industry is still in its early days. So, it envisions a timeline for crypto adoption globally.
As you follow on Kriptokoin.com, some Bitcoin advocates claim that BTC is a serious safe haven. However, the CEO of Coinbase does not fully agree with this view. Because, he says, Bitcoin’s market cap isn’t big enough yet for it to act that way. However, Armstrong suggests that Bitcoin will succeed in fulfilling its role of “new gold” in the next decade. In this context, Armstrong makes the following assessment:
Typically in macro environments on decline, we see a flight to safety. In the traditional economy these have always been commodities like gold. However, in this regression, we realized that the crypto economy is not a significant enough percentage of the global economy. In fact, it’s still too early for people to look at Bitcoin as a safe haven and treat it as digital gold. I think we’ll probably see that change over time.
“Cryptocurrency will follow the same trajectory as the adoption curve of e-commerce”
However, Brian Armstrong predicts that in the next five or ten years, the crypto economy will truly become a larger percentage of global GDP. He says that when that happens, people will actually flee to Bitcoin as a kind of ‘new gold’. Armstrong continues his assessment:
But that hasn’t happened yet. Frankly, I admit that I have overestimated Bitcoin’s chances of hedging this inflation risk in this macro environment. I thought this kind of environment would draw more attention to Bitcoin. However, it seems a little early.
Meanwhile, Armstrong says crypto will likely follow the same trajectory as e-commerce adoption curve. “It’s such a nice reminder that even when I started Coinbase 10 years ago, I thought it was too early. But even today, it’s still too early,” he says. From this point of view, he ends his speech with the following comments:
It will be decades before the global macro environment begins to consider the crypto economy as the main element. We saw something similar happen 20 years ago in 1999-2000, when e-commerce first started. People treated it as a side show. “Oh, I would never put my credit card on a website. It gets stolen or something happens,” we would say. And here we are 20 years later and e-commerce is 15-20% of global GDP. So the crypto economy will follow a similar trajectory. It just means we probably have another five or ten years.
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