Coinbase’s Brian Armstrong Says Bitcoin Isn’t A Threat To The Dollar — It’s A Safety Valve For US Inflation

In a podcast on Sunday, Armstrong said Bitcoin provides market feedback that traditional fiscal systems lack.

• Brian Armstrong warned that inflation persistently outpacing GDP growth could weaken confidence in the dollar.
• He said rival powers, including China, could seek to challenge U.S. reserve currency dominance over time.
• Armstrong suggested Bitcoin could indirectly strengthen the dollar by discouraging fiscal excess.

Coinbase (COIN) CEO Brian Armstrong said on Sunday that Bitcoin (BTC) acts as a “check and balance” on the U.S. dollar rather than an existential rival. 

“Bitcoin, in an indirect way, is helping the dollar,” Armstrong said during Rick Rubin’s Tetragrammaton podcast over the weekend. “If there's too much deficit spending or inflation, people will flee to Bitcoin in times of uncertainty.” 

He argued that Bitcoin introduces discipline into a system where political incentives often make it difficult to rein in spending. By giving people an alternative store of value, Bitcoin forces governments to pay closer attention to fiscal policy.

Bitcoin Brings Market-Based Discipline

Armstrong warned that sustained inflation outpacing GDP growth, beyond the “okay” 2% to 3% range, could erode confidence in the dollar. He added that such an instance could open the door for rivals like China to challenge the dollar’s role as the world’s reserve currency. According to him, Bitcoin may paradoxically “extend the American experiment.”

“United States and China, these other powers are coming in, trying to compete for that [reserve currency status] over time. So I actually think, in a strange way, Bitcoin is helping extend the American experiment.” 

– Brian Armstrong, CEO, Coinbase

COIN’s stock edged 0.4% lower in pre-market trade on Monday, with retail sentiment around the company on Stocktwits trending in ‘bearish’ territory over the past day, with ‘low’ levels of chatter.

Meanwhile, Bitcoin’s price recovered to around $90,000, up 2.8% in the last 24 hours. On Stocktwits, retail sentiment around the apex cryptocurrency remained in ‘bearish’ territory amid ‘low’ levels of chatter over the past day. 

Bitcoin Vs. The Dollar

Armstrong’s comments reflect a broader shift among crypto executives, who increasingly frame Bitcoin as a stabilizing force within the global financial system rather than a replacement for it.

BlackRock CEO Larry Fink warned recently that rising U.S. debt could eventually push investors toward Bitcoin as an alternative store of value. Bitwise CIO Matt Hougan likened BTC’s potential to gold’s 2025 rally, driven by central bank demand, positioning it as a volatility hedge that stabilizes dollar-exposed portfolios amid inflation fears.

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