Coinbase CEO Calls on Countries to Set Up Bitcoin Reserves

Coinbase co-founder and CEO Brian Armstrong has encouraged governments worldwide to consider building Bitcoin (BTC) reserves as a safeguard against inflation. His comments followed Bitcoin’s recent surge past the $100,000 mark.

If you bought $100 of Bitcoin when Coinbase was founded in June 2012, it would now be worth about $1,500,000.

If you kept the $100 USD you’d only be able to purchase about $73 worth of goods today.

Bitcoin is the best performing asset of the last 12 years, and it’s still early… pic.twitter.com/dvBgX5K7or

— Brian Armstrong (@brian_armstrong) December 5, 2024

In an X post, Armstrong reflected on Bitcoin’s remarkable growth over the past 12 years. He pointed out that $100 invested in BTC in June 2012, when Coinbase was launched, would now be valued at approximately $1.5 million. Meanwhile, $100 in fiat currency would have lost significant purchasing power, now worth just $73 due to inflation.

Armstrong emphasized Bitcoin’s strength as a store of value, stating:

“Bitcoin is the best-performing asset of the last 12 years, and it’s still early days.” 

He further argued that governments, especially those concerned with inflation protection, should consider holding Bitcoin in reserve to safeguard their economies.

Bitcoin Could Replace Gold

The CEO’s perspective aligns with the broader narrative of BTC as an effective hedge against inflation and a valuable strategic asset. This viewpoint is gaining traction among both institutional investors and governments.

Analysts have pointed out that Bitcoin’s low correlation with inflation and appreciation distinguishes it from traditional assets like gold. Firms like brokerage giant Bernstein support this view, which recently stated that Bitcoin could replace gold as the leading “store of value” within the next decade.

The brokerage firm attributed Bitcoin’s growth to optimism surrounding possible U.S. policy changes under the Trump administration.

Federal Reserve Chair Jerome Powell also weighed in on the debate, referring to Bitcoin as “digital gold” during his appearance at the New York Times DealBook Summit. He characterized Bitcoin as a speculative asset distinct from the U.S. dollar.

A Historic Milestone

Bitcoin reached a record high of $103,679 on Thursday, marking a historic milestone. The surge occurred amid a broader market rally following the U.S. presidential election. Donald Trump’s win and his pro-crypto stance have sparked renewed optimism in the digital asset market.

The rally gained further momentum after Trump nominated Paul Atkins, a lawyer with a pro-crypto stance, to be the next Chair of the SEC, hinting at potential shifts toward more favorable regulations for cryptocurrencies.