Coinbase CEO: Bitcoin and other digital currencies will become the world's reserve currency

On May 25, at the Token Summit held at the New York University Stern School of Business, Coinbase CEO Brian Armstrong raised the possibility of digital currencies and cryptocurrencies such as Bitcoin replacing reserve currencies such as the US dollar.

Over the past year, the value of Bitcoin has surged. From the beginning of the year to now, the price of Bitcoin has increased by 375% , from $900 to $2,400. Analysts believe that the current rise in Bitcoin prices is due to the global awareness of the value of Bitcoin as a safe-haven asset and digital gold.

Independent, transparent, decentralized, secure

Due to its decentralized nature and independent network, individual and institutional investors consider Bitcoin to be a safe haven asset. In the P2P Bitcoin network, users can receive and send transactions without the presence of intermediaries and third-party service providers. It is precisely because of Bitcoin's financial independence that analysts and investors believe that Bitcoin can replace the current banking and financial system.

More importantly, Bitcoin can provide users with an independent, transparent, decentralized and secure financial network. Therefore, many mainstream media, outstanding entrepreneurs and high-profile investors have mentioned the possibility of Bitcoin replacing reserve currencies in the future.

In a program on Australian news agency ABC News, analysts discussed the possibility of Bitcoin replacing the US dollar, and Coinbase CEO believes that Bitcoin and other cryptocurrencies are likely to eventually become the world's reserve currency.

He said in his speech at the Token Summit:

I think some digital currency will eventually become the world's reserve currency. There is already a trend towards this.

The maturation of cryptocurrency technology

Fred Wilson, founder of investment firm Union Square Ventures, also said that the full popularization of cryptocurrencies and blockchain is coming. He is also very optimistic about Bitcoin, the world's largest cryptocurrency. He has been a supporter of Bitcoin since 2013 and believes that solving the expansion problem can expand the Bitcoin market.

Wilson, Armstrong and most cryptocurrency investors will try to avoid defining other digital currencies in terms of Bitcoin, which will give other cryptocurrencies a chance to succeed in the long run. Cryptocurrencies such as Ether, Monero and Litecoin (LTC) can complement Bitcoin's lack of anonymity, flexibility and functionality.

Obviously, Bitcoin as a technology should mature and solve existing technical problems, such as expansion and deployment of second-layer solutions. If Bitcoin is to become a currency and digital cash system, its transaction fees should be significantly reduced and transaction confirmation speed should be faster.

If Bitcoin continues to grow and advance in terms of market capitalization, user base, and technology, it will likely become a reserve currency in the future.