Coinbase CEO Brian Armstrong has stated that Bitcoin is a “better form of money” than gold. He highlights Bitcoin’s scarcity, portability, and divisibility as major benefits.
Armstrong predicts that Bitcoin’s market cap, currently around $2 trillion, could exceed gold’s $18 trillion in 5 to 10 years. He encourages governments to invest part of their gold reserves in Bitcoin, viewing it as a more reliable store of value.
Armstrong‘s comments followed a rejection from South African Reserve Bank Governor Lesetja Kganyago, who questioned Bitcoin’s importance as a reserve asset compared to gold’s historical role. Kganyago emphasized gold’s long-standing trustworthiness and suggested that Bitcoin’s adoption should involve public debate rather than market pressures.
In a post on X (formerly Twitter), Armstrong explained why he believes Bitcoin is superior. He pointed out that Bitcoin is easier to verify and transact than gold, which can be harder to assess for purity. He also noted that Bitcoin currently represents only 11% of gold’s market cap and suggested that countries should start by allocating at least that percentage of their gold reserves to Bitcoin.
Armstrong believes that if the U.S. establishes a Strategic Bitcoin Reserve, other G20 nations may follow suit. He considers Bitcoin the best-performing asset of the last decade and urges governments to view it as a long-term investment.
Despite skepticism from Kganyago, the concept of a Strategic Bitcoin Reserve is gaining traction in the U.S. States like Wyoming, Oklahoma, and Texas are introducing laws to recognize Bitcoin as a strategic asset. Additionally, former President Donald Trump signed an executive order to create a “national digital asset stockpile,” aiming to include Bitcoin in the nation’s financial strategy.
Armstrong remains hopeful about Bitcoin’s future, suggesting it could start as a small percentage of a country’s reserves and grow to match or surpass gold holdings. He believes Bitcoin’s unique features and potential for growth make it a vital asset for modernizing financial reserves.
