Coinbase CEO Brian Armstrong made a bold statement: Bitcoin never evolved into a daily payment tool as Satoshi Nakamoto intended. Instead, the first cryptocurrency has carved out a niche as digital gold, while the role of a global settlement instrument has shifted to stablecoins. This is not just an opinion — it is a statement of market reality that I have observed over the past few years.
At the time of writing, BTC is trading around $64,523, nearly 45% below its all-time high of $126,080 from October 2025. Meanwhile, the supply of stablecoins continues to hit new records. The gap between Bitcoin's price and its original concept is becoming increasingly evident.
Why Bitcoin strayed from Satoshi's vision
In his 2008 Whitepaper, Satoshi described digital money operating without banks. Even the first BTC block contained a 2009 headline about bailing out British banks. However, 17 years later, Armstrong admits: making Bitcoin a payment tool has failed. Attempts to implement the Lightning Network have not led to mass adoption.
The root of the problem lies in Bitcoin's very design. Its supply is limited, which encourages holders to view it as gold and hoard it rather than spend it. High volatility only reinforces this behavior. People are confident that Bitcoin will appreciate over time and are in no hurry to part with it now.
Stablecoins have taken over as the key payment tool
Stablecoins have filled the void. Tokens pegged to the dollar now perform the routine function of money. According to DefiLlama, the total supply of stablecoins is approaching $310 billion. USDT from Tether accounts for $184 billion, while USDC from Circle occupies another $73 billion.
Armstrong also credited the GENIUS Act, signed by Trump in July 2025. Thanks to this document, stablecoins became legal and gained user trust in the US. A significant portion of the turnover now operates on Base and Solana.
There is no problem with this, the Coinbase CEO believes. Bitcoin has simply found its niche. The creators did not intend it as a tool for mass payments. For them, Bitcoin is digital gold.
Analytical conclusion. The evolution of the crypto market has shown that Satoshi's original utopia of decentralized money has transformed into a pragmatic model: Bitcoin as a store of value, stablecoins as a medium of exchange. And this, in my view, is a much more sustainable and realistic structure for mass adoption.