In the latest interview, Coinbase CEO Brian Armstrong shares his thoughts on the broader market amid a month-long dump and the company’s forward trajectory. He also commented on Ray Dalio’s “The Changing World Order” theory, saying that if crypto adoption continues to increase, a new world order may revolve around a decentralized West competing with a centralized East.
crypto as a hedge
Comparing the current bear market to the previous ones, Coinbase CEO Brian Armstrong said in his latest interview that this time it has shown very different characteristics. Primarily, crypto now has many more use cases than in earlier cycles. Moreover, this time around there was no blow-off top in the price of the token, meaning that 85% below ATH may not happen for the major cryptocurrency.
He attributed the change in cycle conditions partly to the macroeconomic environment, which had accelerated crypto dumps as investors viewed the asset as akin to risky tech stocks.
Separately, he believes that the total market cap of cryptocurrency probably needs to increase 5-10x to hedge the asset class against inflation – an approach commonly advocated by some crypto experts.
A Super App Wallet
During the bear market, the CEO said that his company will focus on innovation and development of new products. Notably, the exchange is working on an advanced decentralized wallet that not only provides transactional functionality but also includes a set of features such as personal identification, profile page and reputation score.
In addition to being a financial product, a wallet can be a social platform with interfaces such as social feeds and status, as well as a platform for artists and musicians to showcase their works. In his view, all aspects of a super-app-like wallet explain why Web3 is the next generation of the Internet.
A decentralized West Vs. a centralized former
Renowned hedge fund manager Ray Dalio famously said that the current system of the world – as dominated by the US – is likely to change with the increasing challenges posed by developing countries such as China.
Armstrong acknowledged that the US is in decline – an idea in common with Dalio – while China is on the rise, Armstrong said, adding that the new world order may not be “country-centric”.
With bitcoin rising as a candidate for the new global gold standard, Armstrong argued that a decentralized monetary system establishing BTC as the world’s reserve currency could give a boost to the Western Hemisphere again. He said that if the West does not act, China may one day replace the yuan with the dollar.
“Crypto represents a very attractive alternative for West and Western values to embrace decentralization as a fundamentally new world order, otherwise, the Chinese yuan could become the world’s new reserve currency… In fact it may be beneficial for a centralized East to compete with a decentralized West.”
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