This Is Arguably the Most Significant Use Case for Bitcoin and Cryptocurrency, According to Brian Armstrong
The CEO of Coinbase, Brian Armstrong, has shared his perspective on the most important use cases for cryptocurrencies. In a recent blog post on Coinbase, Armstrong attempts to answer the question: “What is crypto even useful for?”
Beginning his explanation, Armstrong points out that excessive money printing has led to a growing economic inequality due to inflation and stagnation, thereby necessitating a new financial system. He states, “For over 50 years, a familiar pattern that we’ve seen throughout history has played out in the US: the government spends more than it earns because it can print money for ‘free,’ and years or decades later, people pay the price through high inflation and stagnation.”
Armstrong emphasizes that although the average person may not comprehend the intricacies of quantitative easing and federal budget deficits, they do observe the rising prices of necessities such as gas, food, and education. As a result, a significant portion of Americans (87%) believe that the current financial system requires an update, with more than half of younger Americans using it only occasionally or not at all.
In light of these circumstances, Armstrong argues that cryptocurrencies are essential for the restoration of “sound money,” something he believes has transformative potential. He says, “This brings us to the first, and arguably most important, use case for cryptocurrency, which is that a cryptocurrency like Bitcoin is a return to sound money. Like gold, bitcoin is not a national currency backed by a single government.” By providing hard money with a fixed supply, Bitcoin presents a solution to the regressive tax of inflation that disproportionately affects the poorest individuals in society.
Furthermore, Armstrong asserts that crypto contributes to the digitization of the US dollar, offering a solution for fast and cost-effective global payments. Additionally, he highlights its potential as a business model for creative workers and a possible answer to centralized social media.
In conclusion, Armstrong encourages Americans to visit Standwithcrypto.org, a platform that aids in electing pro-crypto candidates in upcoming elections. He believes that by supporting these candidates, it will further advance the adoption and integration of cryptocurrencies in mainstream society.