Coinbase’s CEO Makes Crypto Prediction. Will It Come True?

Will Brian Armstrong, the CEO of Coinbase, crypto prediction come true?

Brian Armstrong, the Chief Executive Officer of Coinbase, has made a prediction that Bitcoin will become a substantial flight-to-safety asset within the next five to 10 years. He made this prediction in a recent interview.

It was stated in an episode of Coinbase Around the Block podcast titled “The State of Crypto and Where It’s Headed with Pomp” that the market capitalization of the primary cryptocurrency is not yet large enough to act as a meaningful flight-to-safety asset. This statement was made in reference to the fact that the episode was titled “The State of Crypto and Where It’s Headed with Pomp.”

On the other side, this is something that could change within the next five to ten years, when the cryptocurrency economy grows and becomes “a large enough percentage of the world economy.” People have a tendency to flock toward the commodity as a type of financial protection when times are uncertain, therefore only at that point could Bitcoin be considered as a form of digital gold, the sense that when times are uncertain, people tend to flock to the commodity.

“I have a strong suspicion that as time goes on, we will most likely be able to observe that transition. According to a quote attributed to a billionaire, “I could see people genuinely fleeing to Bitcoin as the type of ‘new gold,’ if you will, but this hasn’t occurred yet, so don’t get your hopes up. In the next five to 10 years, as the crypto economy really becomes a larger percentage of the global GDP, I could see people genuinely fleeing to Bitcoin as the type of ‘new gold.’”

According to Armstrong of Coinbase, he overestimated the ability of bitcoin to act as a hedge against inflation given the current state of the macroeconomic environment. He added that he had been overly enthusiastic in his judgment. “In this kind of environment, I believed it may really drive more attention to Bitcoin, but it appears that we’re a bit too early for that,” he said. “In this kind of atmosphere, I believed it may really push more attention to Bitcoin,” he said.

Bitcoin is Not Capable of Serving as an Efficient Hedging Asset Against Inflation.

Despite the fact that inflation was starting to pick up steam at the beginning of 2021, the price of bitcoin was able to continue its upward trend throughout the entire year. The concept that Bitcoin may be used as a form of protection against rising prices has been floated by a number of well-known financial organizations as well as prominent investors.

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For instance, in the middle of October 2021, American billionaire Paul Tudor Jones, who controls hedge funds, claimed in an interview with CNBC that he views Bitcoin to be a superior hedge against inflation than gold. “If I had to choose just one, I would pick it above gold right now if I had to make a decision.” There is no question that people will continue to use cryptocurrencies. According to what he said, “it is fairly obvious that it is currently predominating over gold at the present time.”

In a manner that is analogous, analysts working for JPMorgan indicated, prior to the month of October in the previous year, that inflationary fears were the key driver driving the growth in the value of bitcoin. ” They stated in a note that they “believe that the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing,” which triggered a shift away from gold ETFs and into Bitcoin funds since September. “We believe that the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing.” “We believe that the fundamental reason for the present upsurge is the perception that bitcoin is a superior inflation hedge than gold.”

The leading cryptocurrency was unable to maintain its upward trend throughout the year 2022, despite the fact that 2022 saw record levels of inflation. Instead, the value of the currency continued to fall as a rising number of nations’ central banks began to hike interest rates in an effort to bring inflation under control. This was one of the factors that contributed to the loss in the value of the currency.

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