Bitcoin: Armstrong's Choice for U.S. Crypto Reserve
1min read Coinbase CEO Brian Armstrong has expressed his preference for Bitcoin as the sole cryptocurrency in a potential U.S. crypto reserve, following President Donald Trump's announcement on the matter. Armstrong suggested that including only Bitcoin would be the simplest and most straightforward option, likening it to a successor to gold. He also mentioned the possibility of a market cap-weighted index of crypto assets as an alternative, but emphasized that the single-Bitcoin option would be the easiest.
Armstrong's comments came in response to Trump's social media announcement on Sunday, which outlined a planned "Crypto Strategic Reserve" consisting of Bitcoin, Ether, SOL, XRP, and ADA. The coinbase CEO's opinion on the matter is significant, given his influence in the crypto industry and the role of Coinbase as a major cryptocurrency exchange.
However, not everyone shares Armstrong's enthusiasm for Trump's announcement. Arthur Hayes, co-founder and former CEO of BitMEX, dismissed the news as merely "words" and argued that there is nothing new in the proposal. He emphasized the need for congressional approval to borrow money or revalue the gold price higher before any significant action can be taken.
The market reaction to Trump's announcement has been positive, with Bitcoin surging over 8% and Ether up 11% in the past 24 hours. Other cryptocurrencies mentioned in the announcement, such as XRP, Solana, and Cardano, have also seen significant gains. Changpeng Zhao, founder of crypto exchange Binance, encouraged the crypto community to remain calm and not overanalyze the announcement, emphasizing that more "valuable crypto" are likely to be added over time and that more countries will follow suit.
As the crypto industry continues to evolve, the potential inclusion of cryptocurrencies in national reserves could have significant implications for the market and the broader economy. Armstrong's preference for Bitcoin as the sole cryptocurrency in a U.S. crypto reserve highlights the growing acceptance and recognition of Bitcoin as a store of value and a potential alternative to traditional currencies.
