Bitcoin as an Alternative to Fiat Currencies
Brian Armstrong, CEO of Coinbase, has recently reflected on the role that bitcoin might have in the future of Western civilization. In a post on X, Armstrong explained that "One idea I’ve been contemplating is that Bitcoin may be the key to extending western civilization" and that fiat currencies will keep inflating until they lose their advantages as currencies. He believes the U.S. dollar is already on this road but that there are no other alternatives as other fiat currencies face the same problems.
Crypto as an Antidote to Inflation
Armstrong states that crypto might be an alternative to these currencies, even when most people are still not considering it. He thinks people may move fiat into crypto as an "antidote to inflation." Citizens of some embattled countries in Latam, such as Venezuela and Argentina, are already using cryptocurrencies to battle inflation and devaluation due to the woes their economies face derived from their fiat currencies' weaknesses.
Crypto as a Natural Check and Balance
Nonetheless, unlike others, Armstrong does not believe that Bitcoin will kill the U.S. dollar. Instead, he envisions that crypto will become a "natural check and balance" for the American currency as one of the defenses of the American people and Western civilization's interests in the long term. Armstrong stressed that "It’s better to move from dollars to crypto than to another country or region’s fiat. I also think both fiat and crypto will co-exist for a long time. They are more complements than substitutes."
Dollar-Pegged Stablecoins in Battled Economies
Unique use cases of cryptocurrencies have already emerged in countries like Venezuela and Argentina, where citizens are using cryptocurrencies to combat inflation and devaluation caused by the weaknesses of their fiat currencies. Chainalysis' 2023 Geography of Cryptocurrency Report highlights the significance of dollar-pegged stablecoins in this context.
Conclusion
Brian Armstrong, CEO of Coinbase, believes that Bitcoin and crypto have the potential to play a crucial role in the future of Western civilization. While fiat currencies continue to inflate and face challenges, crypto can serve as an alternative and an antidote to inflation. However, Armstrong does not see crypto as a replacement for fiat; instead, he sees both co-existing as complements. The use of cryptocurrencies in battling inflation and devaluation in countries like Venezuela and Argentina further highlights their potential impact. What are your thoughts on Armstrong's perspective? Share your views in the comments section below.
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How To
How to Keep Physical Gold in an IRA
The best way to invest in Gold is by purchasing shares of companies that produce it. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
Another option is to purchase physical gold. You will need to either open an online or bank account or simply buy gold from a reliable seller. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It's also easy to see how many gold you have. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You also have a lower chance of theft than stocks.
There are however some disadvantages. You won't get the bank's interest rates or investment money. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. The taxman might also ask you questions about where your gold is located.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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