Coinbase CEO Brian Armstrong has admitted that Bitcoin no longer fulfills the original vision of its creator, Satoshi Nakamoto, as a digital currency for everyday payments.
Instead, Bitcoin now serves more as a store of value or 'digital gold'.
At the time of writing, the price of Bitcoin is at $64,559, up 0.09% since it opened early Monday in Asian trading.
According to Armstrong, most Bitcoin owners choose to hold the asset because they expect its value to continue to increase in the future.
This situation has caused Bitcoin to be rarely used to buy goods or make daily transactions.
He also explained that several efforts to make Bitcoin more practical as a payment medium, including through the Lightning Network, have not been successful in achieving widespread adoption.
In addition, Bitcoin's high price volatility has also made it less suitable for use as an everyday currency.
At the same time, stablecoins seem to have succeeded in taking over that role.
Stablecoins are cryptocurrencies that are pegged to the value of a fiat currency such as the US dollar, offering a more stable price for payments and money transfers.
Armstrong said stablecoins are now the primary medium of exchange in the digital asset ecosystem, while Bitcoin remains a store of value.
Data shows that the total supply of stablecoins is now approaching $310 billion, with USDT and USDC continuing to dominate the market.
He also noted that the enactment of stablecoin-related legislation in the United States has increased confidence in the use of the digital asset.
The majority of stablecoin transactions are now conducted via blockchain networks such as Base and Solana.
Armstrong stressed that Bitcoin cannot be considered a failure because the asset has successfully established itself as ‘digital gold’.
He believes that Bitcoin and stablecoins now play different roles, with Bitcoin being a long-term investment asset while stablecoins are used as a digital currency for everyday transactions.
