Coinbase CEO Brian Armstrong asserts that the establishment of a U.S. Bitcoin reserve will send Bitcoin’s price soaring.
The crypto industry has had several reasons to be optimistic about the Donald Trump administration, not the least because the president promised to establish a strategic Bitcoin reserve. Recently, one of the crypto industry’s most prominent leaders has offered insight into what this move could mean for the leading digital asset.
Coinbase CEO Envisages Higher Bitcoin Prices
Coinbase CEO Brian Armstrong has asserted that the establishment of a U.S. Bitcoin reserve will send Bitcoin’s price soaring.
The crypto executive expressed this view in an interview with Yahoo Finance‘s Brian Sozzi on Tuesday, January 21, at the World Economic Forum in Davos.
Speaking to Sozzi, Armstrong expressed optimism that Trump would follow through with his promise, noting that the president seemed “excited about it.”
The Coinbase chief, who asserted that the world was moving to a Bitcoin standard for money, contended that other G20 countries were likely to also establish Bitcoin reserves if the U.S. followed through with Trump’s promise. The crypto executive asserted that this would drive the price of Bitcoin “way up.”
In a separate interview with CNBC‘s Andrew Sorkin on the same day, Armstrong estimated Bitcoin’s price potential following the establishment of such reserves to be millions of dollars, adding other factors like growing institutional adoption.
He further asserted that many finance ministers he had spoken to at Davos seemed more open to pursuing Bitcoin reserves in their country amid Trump’s plan.
A Matter of National Security?
Brian Armstrong’s Tuesday statements follow a blog post from Friday, January 17, in which he argued for countries to establish Bitcoin reserves as a matter of national security.
In the post, he asserted that Bitcoin had the potential to become as crucial to the global economy as gold, adding that in this world, its ownership could tip the scales of power among nation-states.
This view comes as proponents of the digital asset continue to tip it as a strong hedge against inflation that will eventually surpass gold. In practice, however, the asset has yet to prove this case as it largely continues to move in tandem with risk assets like equities.
Meanwhile, despite Armstrong’s high hopes for a U.S. Bitcoin reserve, popular crypto prediction market Polymarket currently places the odds of this happening within the first 100 days of Trump’s administration at only 36%.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
