Brian Armstrong – CEO of major U.S. crypto exchange Coinbase, has just talked about the potential growth of cryptocurrencies, as well as the driving forces for this growth.
Cryptocurrency has grown thanks to economic stimulus policies
He said the stock market decline and lower interest rates could lead to the growth of the cryptocurrency sector this year.
The CEO of Coinbase also added that governments in many countries around the world will stimulate the economy in every way, including quantitative easing and expansion of money supply, in fact printing more money.
A down stock market and interest rate cuts may lead to growth in crypto this year. Governments around the world are likely to look to stimulate the economy in any way they can, including using quantitative easing and expanding the money supply (printing money).
– Brian Armstrong (@brian_armstrong) March 3, 2020
China has already done this, printing $ 173B. This may lead to a movement of funds into crypto, that are viewed as a hedge against inflation.
– Brian Armstrong (@brian_armstrong) March 3, 2020
According to Armstrong, this will lead to a shift of funds into cryptocurrencies, which is seen as a haven against inflation. He also reminded that this will be the year that institutional investors need to switch minds, need to see cryptocurrencies from trading currencies into reserve currencies.
4 things the cryptocurrency industry needs to do
Coinbase's CEO said that in order for cryptocurrencies to thrive, there are four jobs that the industry needs to perform:
- Ability of extension. These blockchains can achieve a minimum of thousands of transactions per second to help that cryptocurrency receive mainstream acceptance.
- Security. Need to have coins safe, secure.
- Decentralized identification. A decentralized application inside an electronic wallet should automatically know the user. It will allow users to earn reputation and authentication points or requests for KYC (customer authentication). This can help unlock in many use cases.
- Developer tools These tools need to be very simple for developers to build apps, publish and distribute them.
As for the prospect of a fight in the field of blockchain and cryptocurrencies in the far future, Armstrong is not sure about who won the month. He said that in tens of years, it is not necessary that Bitcoin No. 1 in the world will be the winner.
In conclusion: I think it's still very much up in the air which blockchain will help get crypto from ~ 50M users to 5B. The chain that manages to ship some of these scalability, privacy, decentralized identity, and developer tool solutions will have a big leg up.
– Brian Armstrong (@brian_armstrong) March 4, 2020
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