The excitement for the new year seems to have begun in the cryptocurrency market. Bitcoin and altcoins started the new week with gains.
As Bitcoin (BTC) surged above $90,000, the upward wave was also seen in altcoins. Ethereum (ETH) also rose, surpassing the $3,000 level again, indicating an upward trend in altcoins as well.
With a positive sentiment prevailing in the market, Coinbase CEO Brian Armstrong stated that Bitcoin could have a positive impact on the US dollar.
In an interview with Rick Rubin on Tetragrammaton, Armstrong argued that Bitcoin provides healthy competition for the US dollar, forcing policymakers to maintain fiscal discipline and helping to preserve the dollar’s dominance.
“Bitcoin is good for the US dollar. It acts as a counterweight against hyperinflation and budget deficits.”
According to the Coinbase CEO, Bitcoin indirectly helps keep the dollar in check by preventing the Fed and financial regulators from taking actions that could undermine confidence in the US economy.
Armstrong also emphasized that Bitcoin, rather than replacing the existing monetary system, could serve as a complementary tool to strengthen market oversight and the discipline of monetary policy and fiscal governance.
Coinbase CEO’s remarks are noteworthy because they come at a time when real assets like gold and silver, seen as alternatives to Bitcoin, have recently reached record highs, and the debate about Bitcoin’s potential as a hedge against inflation has resurfaced.
*This is not investment advice.