At a time when everyday conversations about money are starting to feel heavier, rising prices, growing government debt, and questions about long-term stability, Bitcoin is again being pulled into the center of a much bigger debate. This time, the argument isn't about replacing the U.S. dollar, but about whether Bitcoin can quietly make the system stronger. Coinbase CEO Brian Armstrong believes it can.
Speaking in December, Armstrong said Bitcoin acts as healthy competition for the U.S. dollar. Not as an enemy, and not as a substitute, but as an alternative that keeps policymakers on their toes. In his view, when people have a credible exit option, governments are forced to be more careful with how they manage money.
Armstrong explained that Bitcoin works more like a market signal than a political weapon. When inflation rises or government spending grows too fast, confidence in traditional money starts to weaken. People don't wait for official reforms. They simply look for safer places to store value. Bitcoin, in that sense, reflects stress in the system rather than causing it.
He pointed out that moderate inflation can work if the economy grows at the same pace. The problem begins when inflation runs ahead of growth. Over time, that gap chips away at trust in the dollar, especially for global investors who rely on it as a store of value. Bitcoin’s existence, Armstrong argued, forces institutions like the Federal Reserve and lawmakers to think harder about the long-term impact of their decisions.
David Adubiina
Does Bitcoin actually weaken the U.S. dollar or hold it accountable?
This argument becomes more serious when viewed alongside America’s rising debt. The U.S. national debt has climbed to historic levels and continues to grow rapidly.
For Armstrong, Bitcoin introduces an unusual form of accountability. If confidence breaks down, people can move capital elsewhere. That possibility alone creates pressure. From this perspective, Bitcoin does not weaken the dollar. It quietly encourages better discipline to protect it.
Armstrong is not alone in framing Bitcoin this way. BlackRock CEO Larry Fink has previously described Bitcoin as a hedge against currency debasement, particularly for countries that struggle with fiscal control. Hedge fund manager Paul Tudor Jones has compared Bitcoin to digital gold, saying it serves as protection in an era of aggressive money printing. Even Federal Reserve officials have acknowledged that crypto reflects public concerns about inflation and trust, even if they disagree on its role.
Across these views, the comparison is consistent. Bitcoin is not positioned as a new national currency, but as a parallel system that highlights weaknesses in existing ones.
David Adubiina
What role do stablecoins play in the future of the U.S. dollar?
While Bitcoin often grabs headlines, Armstrong and others have noted that dollar-backed stablecoins may be doing more to extend U.S. influence globally. Stablecoins allow people around the world to use digital dollars for everyday payments, savings, and transfers, often without touching the traditional banking system.
When the U.S. economy shows strength, confidence tends to flow back into dollar-based assets. In those moments, Bitcoin does not always rise. Stablecoins, however, gain traction by making the dollar easier to use across borders. Some industry leaders argue that this quietly reinforces dollar dominance in the digital economy.
Taken together, Bitcoin and stablecoins play very different roles. Bitcoin applies pressure by offering an alternative during times of instability. Stablecoins extend the reach of the dollar when confidence is high. Armstrong’s core argument is that this balance ultimately benefits the U.S., not by eliminating the dollar, but by forcing it to remain credible.
In that sense, Bitcoin’s most important impact may not be its price or volatility, but the uncomfortable questions it keeps raising. And for policymakers, those questions are becoming harder to ignore.
David Adubiina
