Introduction
Brian Armstrong, the CEO of Coinbase, one of the leading U.S.-based cryptocurrency exchanges, recently shared his thoughts on the potential role of Bitcoin in the future of Western civilization. In his post on X, Armstrong expressed his belief that Bitcoin could be the key to extending the influence and stability of Western civilization, particularly as fiat currencies like the U.S. dollar continue to face inflationary pressures.
Bitcoin as an Alternative to Fiat Currencies
Armstrong argues that Bitcoin offers an alternative to traditional fiat currencies, such as the U.S. dollar, which are susceptible to inflation. He suggests that as fiat currencies lose their advantages as stable currencies, Bitcoin could emerge as a viable alternative. Armstrong acknowledges that other fiat currencies, like the Yuan and Euro, also face their own issues and are currently not seen as viable alternatives. Therefore, he believes that the U.S. dollar will likely continue to inflate.
Crypto as an Antidote to Inflation
While many people have yet to consider cryptocurrencies as a solution to inflation, Armstrong suggests that people may start to move their fiat currencies into crypto as an "antidote to inflation." He highlights the unique use cases of cryptocurrencies in countries like Venezuela and Argentina, where citizens have turned to cryptocurrencies to combat the inflation and devaluation caused by the weaknesses of their fiat currencies. These examples demonstrate the significance of dollar-pegged stablecoins, as emphasized in Chainalysis' 2023 Geography of Cryptocurrency Report.
Bitcoin as a Check and Balance
Contrary to some opinions, Armstrong does not believe that Bitcoin will replace or kill the U.S. dollar. Instead, he envisions crypto becoming a "natural check and balance" for the American currency. In his view, crypto can serve as a defense mechanism for the American people and the long-term interests of Western civilization. Armstrong suggests that it is better to transition from dollars to crypto rather than seeking refuge in another country or region's fiat currency. He also believes that both fiat and crypto will coexist for a significant period, as they are more complementary than substitutable.
Conclusion
Coinbase CEO Brian Armstrong's perspective on the future role of Bitcoin and cryptocurrencies in extending Western civilization provides valuable insights into the evolving landscape of finance and currency. As fiat currencies face inflationary pressures, Bitcoin offers an alternative that could potentially address these challenges. The unique use cases of cryptocurrencies in countries facing economic turmoil underscore their potential as a safeguard against inflation and devaluation. While crypto may not replace fiat currencies entirely, it can serve as a vital check and balance, ensuring the stability and long-term interests of Western civilization.
What are your thoughts on Brian Armstrong's views? Share your opinions in the comments section below.
Frequently Asked Questions
How much should your IRA include precious metals
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You may consider buying physical coins such as bullion bars or rounds. Stocks in companies that produce precious materials could be purchased. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You'll still get the benefit of precious metals no matter which country you live in. Although they aren’t stocks, they offer the possibility for long-term gains.
They also tend to appreciate over time, unlike traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
What Is a Precious Metal IRA?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These precious metals are extremely rare and valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals are often referred to as “bullion.” Bullion refers simply to the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. You'll get dividends each year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. You pay only a small percentage of your gains tax. You can also access your funds whenever it suits you.
What precious metals can you invest in for retirement?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It's also very safe and stable. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Silver has always been popular among investors. It's a great option for those who want stability. Silver, unlike gold, tends not to go down but up.
Platinium is another precious metal that is becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It's also more expensive than the other two.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
cftc.gov
How To
Tips to Invest in Gold
One of the most sought-after investment strategies is investing in gold. This is due to the many benefits of investing in gold. There are many options for investing in gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, verify that your country permits gold ownership. If you have permission to possess gold in your country, you can then proceed. Otherwise, you can look into buying gold from abroad.
- The second thing you need to do is decide what type of gold coins you want. You can choose between yellow gold and white gold as well as rose gold.
- Third, consider the cost of gold. It is best to begin small and work your ways up. When purchasing gold, diversify your portfolio. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- Last but not least, remember that gold prices fluctuate frequently. It is important to stay up-to-date with the latest trends.
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By: Sergio Goschenko
Title: The Future Role of Bitcoin in Extending Western Civilization, According to Coinbase CEO Brian Armstrong
Sourced From: news.bitcoin.com/coinbase-ceo-brian-armstrong-bitcoin-may-be-the-key-to-extending-western-civilization/
Published Date: Wed, 06 Dec 2023 07:00:33 +0000
