Coinbase CEO: Bitcoin will replace the dollar in 10 to 15 years

Bitcoin has become the world's fastest growing new investment tool and provides a clear alternative to traditional government currencies. Coinbase CEO Brian Armstrong believes that Bitcoin will actually replace the US dollar as the new global reserve currency.

Armstrong said on his personal Twitter: "Maybe many people think this is crazy, but I still think that Bitcoin will replace the US dollar as the new global reserve currency in the next 10 to 15 years."

Is Armstrong right? No one knows.

The first thing we need to consider is that Bitcoin can be created over and over again, but its total amount is capped at 21 million. Once all 21 million Bitcoins are mined, no new Bitcoins will be created. This is an advantage over government fiat currencies, which can be created essentially at will.

Through loose monetary policy, selling government bonds, and even using the printing press, the government can create unlimited money as long as they want. Unfortunately, because the government creates money without limit, the currency will continue to depreciate. As time goes by, the legal currency will become less and less valuable, while Bitcoin will appreciate. It will help people resist inflation and become a new choice for people to store wealth. Compared with government legal currency, it has unique advantages.

At present, most governments in the world have various debt and asset management problems, which have a great impact on the value of each country's own legal currency.

Fiat currencies are allowed to float freely, which means that the value of fiat currencies can fluctuate up and down. For example, last August, 1 euro was worth about 1.33 US dollars. Recently, 1 euro was worth only 1.08 US dollars, which means that the value of the euro has fallen relative to the US dollar. It is worth noting that in 2008, 1 euro was worth almost 1.60 US dollars, so the decline in recent years is amazing.

Why is the euro falling? There are many reasons. Many European banks and investment institutions were affected by the bad mortgage and real estate bubbles in the United States. In addition, many European countries have also suffered from their own real estate bubbles. Many European countries, especially those in southern Europe, have accumulated debts to the point where they can no longer be repaid.

Do the above comments mean that Bitcoin is destined to become a global reserve currency? We still need to think calmly. Although government agencies in most countries have adopted a tacit attitude towards digital virtual currencies, they have not expressed a particularly strong interest in digital virtual currencies.

Now, Bitcoin may become an alternative to the US dollar, rather than a replacement for the US dollar. The best solution is for Bitcoin to be truly trusted by users.