Crypto Needs 5-10x Growth to Become an Inflation Hedge: Coinbase CEO

Brian Armstrong, Coinbase CEO, shared his views on the wider market in the wake of a long dump and the future trajectory of the company. He also spoke out on Ray Dalio’s theory of “The Changing World Order”, stating that if crypto adoption continues, a new order could revolve around a decentralized East competing against a centralized West.

Crypto as a hedge

In a recent interview, Brian Armstrong, Coinbase CEO, stated that the current bear market had very different characteristics from previous cycles. Essentially, crypto has more uses than in previous cycles. This time, there was no blowoff top to tokens’ prices. Therefore, 85% of ATHs could not be achieved to major cryptocurrencies.

He said that the changes in the cycle conditions were partly due to the macroeconomic environment, which had exacerbated crypto dump. Investors tended to see the asset as being similar to high-risk tech stocks.

He also believes that the cryptocurrency market cap must increase by 5-10x in order to make it an inflation hedge – something many crypto experts advocate.

Super App Wallet

The CEO stated that his company would be focusing on innovation and the development of new products during the bear market. The exchange is currently working on an upgrade to its decentralized wallet, which will allow transactions to be conducted and also include features like personal identity, reputation scores, and a profile page.

The wallet can be used as a financial product as well as a social platform that allows users to access their status and social feeds. It could also allow artists and musicians to showcase their work. He believes that Web 3’s all-encompassing features, such as the wallet-like super-app, are the reason why it is the next generation.

The Centralized East vs. the Decentralized West

Ray Dalio, a well-known hedge fund manager, famously stated that the current world order, which is dominated by America now, will change due to the growing challenges from developing countries like China.

Armstrong acknowledged that the US is in decline, a view shared by Dalio’s. However, China is growing fast. Armstrong stated that the new world order might not be “country-centric”.

Armstrong suggested that Bitcoin could be a candidate to become the global gold standard. He said that China could one day replace the dollar by replacing it with the Yuan if the West doesn’t make a move.

“Crypto is a compelling alternative for the West, and the Western Values to embrace the decentralization of the new world order because otherwise, the Chinese Yuan could become the reserve currency of the world…So it may actually be beneficial to have a decentralized West that can compete with a central East.”

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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