Coinbase CEO Brian Armstrong and Elon Musk blame excessive government spending for the current inflation in the US.
Armstrong suggests that Bitcoin is a check and balance on excessive inflation.
He asserts that buying Bitcoin is a strategic move against inflation.
Coinbase CEO Brian Armstrong joins the debate on U.S. inflation, echoing Elon Musk’s viewpoint.
In a recent tweet, Armstrong argued that the primary driver of inflation is excessive government spending, which forces governments to print more money. He stressed that this leads to inflationary pressures that erode the value of traditional currencies.
This is true. People tie themselves in knots trying to explain causes of inflation, but the primary cause is the government spending more money than it has, and needing to print more.Neutralize that, and most inflation problems go away. Bitcoin is the check and balance on… https://t.co/XaeKzNQ4ZA
— Brian Armstrong (@brian_armstrong) August 16, 2024
Armstrong’s comments came in response to a tweet from Elon Musk, who also blamed government spending for inflation. Musk stressed the importance of reducing wasteful government expenditures to curb inflation.
This conversation comes at a time when U.S. inflation has shown signs of moderation. As of July 2024, the U.S. inflation rate was recorded at 2.89%, down from 2.97% in June 2024. This marks a continued decline from the previous year, where inflation rates were notably higher, such as 3.70% in September 2023.
Building on Musk’s perspective, Armstrong took the argument a step further, suggesting that Bitcoin is the ultimate check and balance on such inflation. “Bitcoin is the check and balance on excessive inflation. Buying it is a vote against inflation,” Armstrong tweeted.
This view stems from Bitcoin’s fixed supply of 21 million coins, which makes it resistant to inflationary risks associated with traditional currencies. As a result, Bitcoin is increasingly seen as a safeguard and store of value during times of economic uncertainty.
As governments worldwide continue to grapple with rising inflation, Armstrong’s proposal of Bitcoin as protection against monetary devaluation highlights the growing belief within the crypto community that crypto assets can serve as a hedge against traditional financial risks.
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