According to Coinbase CEO Brian Armstrong, the presence of Bitcoin is beneficial for the US dollar, as it introduces competition that encourages fiscal responsibility among policymakers. In an interview, he explained that during times of economic uncertainty, individuals may turn to Bitcoin, which serves as a check against excessive inflation and deficit spending.
The US national debt has escalated to approximately $37.65 trillion, increasing at a staggering rate of nearly $4.25 million each minute. As concerns about inflation rise, Bitcoin has garnered attention as a potential hedge against the weakening dollar. Recently, it reached a peak of $126,080 before experiencing a 30% decline.
Armstrong emphasized that Bitcoin indirectly pressures the Federal Reserve to maintain confidence in the US economy, arguing that if inflation exceeds economic growth, it could jeopardize the dollar's reserve currency status. He concluded that, paradoxically, Bitcoin aids in prolonging the strength of the American economic framework.