Balaji: The Fiat Currency Crisis Has Begun, Bitcoin's Core Value Lies in Its Censorship Resistance

Odaily News According to a post on the X platform by Balaji, former CTO of Coinbase and a general partner at A16z, the fiat currency crisis has begun, and Bitcoin's core value proposition lies in its censorship resistance. Balaji believes that while gold holds value in highly organized nations, it also faces risks of being tracked and confiscated. In contrast, digital gold (and cryptocurrencies) represented by Bitcoin possess attributes of invisibility, internationalization, instantaneity, and being internet-native, outperforming physical gold in terms of transportability, programmability, and ease of verification.

Balaji pointed out that as gold prices rise, actions such as taxing or confiscating physical gold will also increase. He predicts that Eastern countries like China may pivot back towards a gold standard, a digital gold standard, or a hybrid system of both, and that the internet will replace the US dollar with digital gold and encrypted, verifiable digital assets. Furthermore, Balaji advises investors that against the backdrop of deepening sovereign debt crises, they should consider withdrawing from regions highly dependent on the US dollar, such as G7 countries, and emphasizes that in the current environment, the choice of geographical location is more important than asset allocation.